Fifth of people 'would shun paying bills annually despite any savings'

More than a third of people say they cannot afford to pay for items or bills in one go, a survey has found.

Some 36% of people say they do not have enough funds to pay bills upfront in a single lump sum, Nationwide Home Insurance found.

Despite the potential to make savings by paying in one lump sum rather than spreading the cost in some cases, nearly a fifth (18%) of people surveyed said no amount of money saving would encourage them to pay their bills in one go, rising to nearly a quarter (23%) of over-55s.

Less than a third (30%) of people surveyed opt to pay for bills and policies upfront.

For those who pay upfront, a third (33%) said it meant that they could avoid thinking about that bill for another year, while 30% said it can save them money.

Phone line rental, mobile phone charges and TV subscription services are among the most common bills people prefer to pay in instalments, the survey found.

The research also found younger people are particularly likely to choose a particular brand based on the payment options they offer to customers.

Three-fifths (61%) of adults do this, including seven in 10 (71%) 16 to 24-year-olds and just under half (48%) of those aged 55 and over.

The Nationwide survey also found that around a quarter (24%) of people have asked for a break in instalment payments due to money worries.

Again, this is more prevalent among younger adults (33% of 16 to 24-year-olds) compared with just 6% of those aged 55 and over.

Paul Carvell, head of home insurance at Nationwide, said: "With so many demands on people's money nowadays, it is not always convenient to pay a whole year's premium upfront. Those who choose to pay by instalment shouldn't be penalised for wanting financial flexibility."

More than 2,100 people were surveyed across the UK.