25% of UK Consumers Fail To Save Money By Switching Financial Providers

A number of recent surveys have maintained that UK consumers are increasingly savvy and spend their money wisely. However, recent research suggests otherwise.

According to a new study from Gocompare.com, more than a quarter of UK consumers have not switched providers for any of the 20 most popular financial products in the last year, despite the fact that two-thirds anticipate that 2012 will be extremely tough financially.

This means that 12m people have not changed their car insurance, home insurance, energy providing company, credit card, mobile phone company or mortgage lender, although most of them are well aware that they might find a cheaper offer for those services.

The fact that so many Britons have not made the effort to cut their expenses is surprising, as over two million people, or 8%, consider that paying the mortgage or the rent will prove the biggest challenge in 2012, while 22% are worried about the constantly rising cost of living and bills.

According to the authors of the survey, an average British family may save up to £394 just by switching their car insurance and a further £126 by changing their buildings and contents insurance. In addition, opting for another energy company could result in a £557 drop in gas and electricity bills.

John Miles, business development director at Gocompare.com, noted that financial services providers do not usually provide loyal customers with the best terms and conditions, so it is entirely up to households to do their research and cut their expenses.