FINANCIAL apathy is costing consumers billions a year and may even be damaging their mental health.
Despite most of the population saying that they need to cut back and can barely afford to save, over six-and-a-half million people are throwing away money on regular payments that should have been cancelled.
Meanwhile, one in six young adults admits that financial worries are causing them major stress.
Research for digital banking service B, part of the Clydesdale group, found one in eight people in the UK are making monthly payments for services such as gym memberships or subscriptions that they no longer use.
GoCompare Money believes the problem is even more widespread. It said that four out of 10 are paying out-of-date direct debits, standing orders, subscriptions, donations or memberships, wasting an average of £340 a year.
The comparison site said men are the worst offenders, with 47 per cent making “zombie” payments, compared to 38 per cent of women.
The most common are subscriptions for hardly watched satellite TV (16 per cent), old mobile phone contracts (13 per cent), payments to unused services such as Netflix (seven per cent), forgotten gym memberships (six per cent) and under-used Amazon Prime memberships (five per cent).
GoCompare’s survey also found that many people fail to regularly review bank account and credit card statements, potentially missing the opportunity to spot and deal with these payments.
Forty-four per cent of those questioned admitted they had not checked their direct debits and standing orders in the past 12 months.
Georgie Frost, head of consumer affairs at GoCompare, said: “Automated payments including direct debits and standing orders can save you money and make life easier, ensuring bills are paid on time without you having to think about it.
“But therein lies the problem. Unless you stay on top of your finances, you could end up with a load of zombie bills leeching away your cash.”
A third of those surveyed for digital banking service B confessed they could not be bothered to check their payments, while most others said they were either too busy or there was a technology issue stopping them.
Failing to act leaves them open to stress and discord, with money the main cause of marital arguments for almost a quarter of Britons.
B found that six per cent of the population run out of money every month, and 13 per cent of those in full-time work confessed their only hope of sorting out their finances would be to win the lottery.
According to Lloyds Bank 51 per cent of adults feel under pressure to cut spending to make their money go further, rising to 60 per cent among those with children, while a similar percentage admit they are not saving enough
Helen Page, group innovation director at B, said many younger adults are struggling too.
She explained: “They are grappling with pressures such as social media – just under 15 per cent of adults under 34 admit they are spending beyond their means in order to maintain an ‘Instagrammable life’.
“Add to this the reality that half of those in this age group regularly borrow money from parents to tide them over until payday, and a picture emerges of delayed adulthood which has serious implications on emotional wellbeing.”
Yet taking some simple steps could reduce the pressure on adults of all ages.
Get into the habit of spending a few minutes every month checking bank and credit card statements.
Ask yourself if everything you are spending is strictly necessary. Could the money be better put to another use? If the answer is yes, do something about it.
Put aside an hour or so every few months to scrutinise household bills and use comparison websites to search for cheaper options.
Look too at your current account itself. If you are paying a monthly fee for a so-called packaged account, think seriously about whether it is good value.
If not, transfer to a free account. Halifax, Nationwide, Tesco and TSB all pay interest on credit balances or reward monthly spending. Use a comparison site to decide which would be best suited to your needs.
Ms Page said: “There is an epidemic of financial apathy in the UK. The misconception is that it is time consuming and difficult to either stop automatic payments you don’t need or to switch to a different bank account.
“This is simply untrue – it is possible to apply to switch accounts and stop unnecessary payments in less than 20 minutes and the entire process can be done online.”
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