Consumers 'must prioritise essentials such as gas and electric bills'

Essential bills must be paid off, an expert has said.

Essential bills such as those for gas and electricity supplies are being put lower on the list of priorities by households feeling the strain on their current account balance because of debts accrued on personal finance options such as credit cards.

That is according David Rodger, managing director of the Debt Advice Foundation, who has said that charges for utilities such as gas and electric are being left at the bottom of the pile in terms of the urgency with which people whose cash is being "sucked away" by debt pay them off.

"Many people begin to struggle when interest-free periods on store cards they've maxed out end and higher monthly credit card payments are due," he explained.

Mr Rodger was speaking following the publication of research last week (January 25th 2011) by online resource My Voucher Codes, which revealed that January is the month when most people turn to borrowing in order to ease their financial situation, with 26 per cent of people who loaned money in 2010 doing so in January 2011.

Furthermore, the study established that four per cent of Britons had already borrowed money in the opening weeks of the new year, possibly to help meet fees being charged to them following the festive period.

In addition, 48 per cent indicated that they will borrow money in some form throughout 2011, with August being the least likely month to get into debt.

"It's the reality of spending that often hits in January when the bills begin to arrive," the Debt Advice Foundation official noted.

Mr Rodger went on to advise that "basic essentials" such as utility bills should not be treated as anything but compulsory, but stated that many people seem to be willing to avoid these priorities as their income is taken away by debts.