The cost-of-living crisis continues to take its toll, with nearly two million households falling behind on at least one significant bill in the lead-up to Christmas, leaving them vulnerable to even more financial pressures in January.
According to the latest Which? Consumer Insight tracker's findings, an estimated 1.9mln households missed or defaulted on at least one mortgage, rent, loan, credit card or bill payment in the last month.
Which? said missed payment rates tend to be lower in the lead-up to Christmas, followed by a peak in January when households pay back their Christmas expenses on top of their regular bills.
A year ago, the number of households missing payments was 1.7mln, Which? research showed, with that number jumping to 2.5mln in January 2022.
“With 1.9 million households missing important payments in the run-up to Christmas, we’re worried that many more people could be facing financial crisis in January – as the credit repayments pile up and the cost of living crisis continues to bite,” said Rocio Concha, Which? director of policy and advocacy in a press release.
“As so many people face financial hardship, Which? is calling on businesses in essential sectors like food, energy and broadband providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis,” she added.
The survey found that the most common type of bill missed was energy, at 2.3% of households, followed by council tax at 1.9%, phone at 1.6% and broadband at 1.4%.
Renters were more likely to miss a housing payment (6.4% in the last month) than mortgage holders (2.5%).
Around 15.8mln households, or 56%, cut back on essentials, sold items or dipped into savings in the last month to cover essential spending, Which? noted. This was up from 42% a year ago, but down from 65% in September this year.