Financially squeezed drivers have been hit hard this year by the increasing rise in fuel prices. As a direct result, more households are seeking debt advice to deal with the rising costs of driving.
Within the last year, 1.3 million motorists have given up driving indefinitely, as they can no longer afford to run their vehicles. New research from Sainsbury’s Car Insurance has also revealed that 76 per cent of remaining road-users are being forced to change their driving habits to save money.
However, for the many who do not have the option to change their habits (i.e. those with long journeys to work) a debt solution could provide peace of mind, as they would not have to sacrifice their lifestyle or indeed their job. Included in those changes, motorists are altering their fuelling habits. 26 per cent of which admit that they no longer fill up their tanks, for instance.
They are purchasing specific values of fuel, for instance £10 or £20 per visit. 38 percent of drivers have started using specific forecourts, as they perceivably offer cheaper fuel, or because they offer reward points.
“We estimate the average motorist has an annual fuel bill of over £1,700,” stated Ben Tyte, Head of Motor Insurance, Sainsbury’s Finance. This figure represents a 22.9 per cent year-on-year increase, and highlights just how much the rising cost of motoring is affecting households.
The average total cost of running a car in 2011 is an astonishing 21 per cent higher than it was in 2010, standing at around £3000.
This rise means that 45 percent of motorists (16.5 million people) admit to having to drive less and 7 per cent have even adopted car sharing. A further 10 per cent (3.53 million people) have been made to downgrade their car for a more economic, cheaper model. For those who either cannot afford to make these changes, or those who have but still cannot afford to drive, there is an effective solution at hand. An IVA is suitable for people owing £12,000 or more, and allows you to pay back as much as you can afford, over a five year period.
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