According to a moneysupermarket.com poll, 35% of respondents said that the impact of rising household bills is their main financial concern.
Other issues worrying Britons today include rising motoring costs, which topped the list of concerns for 13% of people, and debts, which were the number one problem weighing on the minds of almost 12% of the moneysupermarket.com users who took part.
These findings are further supported by new research from The Co-operative Bank revealing that eight in 10 UK adults are worried about the state of their finances, with energy bills and personal debt each proving the main concern for 21% of people and transport costs giving 15% sleepless nights.
John Hughes, director of retail banking at the Co-operative Financial Services, said "The fact that 80% of consumers are currently worried about money is a saddening yet unsurprising figure given the current economic climate and increasing cost of living."
Fortunately, moneysupermarket.com is here to help with some great tips on keeping your household bills and motoring costs to a minimum, and getting your debts back under control.
Household bills
For most people, energy bills - which now average around £1,150 a year for the typical British household - are the big problem at the moment, especially as providers are gearing up to hike their prices yet again.
It is vital to ensure that you are on the best possible value tariff as a result.
It is not necessarily just a question of picking the cheapest plan available, though.
Online dual fuel plans generally offer the lowest bills, with the most competitive tariffs generally costing the average household about £940 a year.
However, with summer price hikes just round the corner, paying a bit more for a fix now could well save you a lot in the longer term.
What's more, you may still be able to lower your annual energy spend by switching to a competitive fixed-rate plan.
Britons who have never switched energy providers in the past, for example, could currently save as much as £382 a year by swapping to the current cheapest fixed deal - the Fix Saver v2 tariff from EDF Energy - at £1,009 a year, fixed until September 2012.
Use moneysupermarket.com's energy comparison tool to find the best tariff for you and switch now.
You can also cut your energy costs by taking care to use as little gas and electricity as possible.
Figures from the Energy Saving Trust indicate that fitting energy saving glazing, for example, cuts the average household's heating bill by £140 a year.
And with several water companies planning to introduce higher charges during the summer months - thanks to a government-approved scheme to put water meters into all homes - using as little water as possible is also a good idea.
To save on home phone, broadband and digital TV bills, meanwhile, it is also crucial to shop around and to consider going for a deal that bundles at least two of the three together.
You can pay as little as £7.25 a month for a 12-month TalkTalk deal incorporating phone and broadband, or £20 a month for a phone, broadband and TV bundle from BT lasting 18 months.
Check out the moneysupermarket.com broadband channel to find out more.
Motoring costs
The price motorists paid at the pumps increased to a record high of £1.36p per litre for petrol and £1.42p for diesel in May.
So it makes sense to do a bit of research to ensure you are paying as little as you can for your fuel.
The website Petrolprices.com will help you to see which garages in your local area are offering the lowest prices.
And you can cut the overall cost of fuel by using a credit card that rewards you for spending.
Competitive deals of this kind include the MBNA American Express Card with Cashback, which pays you 1.5% on petrol and supermarket purchases and 0.75% on other spending and the Tesco Clubcard Credit Card, which gives you one reward point for every £4 spent, plus Clubcard points on all petrol purchases at Tesco garages.
You should pay these cards off in full every month to benefit though, as the representative APRs charged otherwise are high at 18.9% variable with MBNA and 16.9% variable on the Tesco card.
Kevin Mountford, head of banking at moneysupermarket.com, said: "Spending on a cashback or reward credit card requires discipline and organisation, as anyone failing to pay back the full balance at the end of each month could be hit with a hefty interest payment which will outweigh the value of the reward.
"Customers can avoid this potential pitfall by setting up a Direct Debit to pay off the full amount each month."
Debt
Recent moneysupermarket.com research shows that the average amount of personal debt, excluding mortgage debt, owed by individuals in the UK is £8,431.
However, most people allow their unsecured debts to mount to an incredible £9,700 before becoming concerned, which is rather worrying given that 12% of respondents to the financial concerns poll said debt was the biggest weight on their shoulders.
If you are struggling with debt repayments, then a good first step is to see if you can cut the interest you are paying on them.
You could do this by taking out a low rate personal loan or applying for a balance transfer credit card with a 0% introductory rate.
The Barclaycard Platinum Card, for example, is currently offering new customers 20 months at 0% (subject to a 3.2% fee), after which the representative APR is 17.5% (variable).
A loan will be more appropriate for larger debts and the good news is that loan rates have edged down slightly in recent weeks.
Nationwide and Alliance & Leicester are both offering a representative APR of 6.7% on loans between £7,500 and £14,999.
Nationwide Flexaccount account customers can benefit from a slightly lower rate of 6.6%.
You will not qualify for the best deals if your credit rating is already damaged by your debt problems, though.
And if you are really struggling, then the best option is to approach one of the free advice services for help.
Tim Moss, head of loans and debt at moneysupermarket.com, said: "Consumers should investigate debt charities such as the Consumer Credit Counseling Service (CCCS), Money Advice Trust or Citizens Advice Bureau."
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
We're free, independent and compare all UK credit cards, as well as offering exclusive deals you can't get anywhere else.
Contact moneysupermarket.com at Moneysupermarket House, St David's Park, Ewloe, Flintshire, CH5 3UZ. © Moneysupermarket.com Ltd 2011
Rate This Article
Click on a star to rate this article.
