For the majority of the UK population, looking for help with energy bills is now an almost daily ritual.
And is it any wonder? An average bill looks set to rise again in October by 70% to £3,358 a year.
With one in three households expected to be in fuel poverty as we head into winter, the situation is becoming increasingly uncertain.
And it doesn’t show any signs of easing with some forecasters warning we could hit the £7,000 mark in 2023.
What’s the government doing to help with energy bills?
Well, aside from telling people to buy a new kettle, two payments totalling £650 are being made to more than eight million low-income households. While a £400 discount, administered by energy suppliers, will be paid to all consumers over six months, starting in October.
This quite simply isn’t going to be enough for many, which is why some people are beginning to consider drastic action.
Should I cancel my direct debit?
Campaign group Don’t Pay UK is demanding a reduction in energy bills to an affordable level, otherwise they’re calling on people to cancel their direct debits from October 1st.
If you are considering going down this route, please be aware of the possible repercussions.
Refusing to pay your direct debit will probably result in you being charged a fee. It also means your energy company may begin sending you your bills, which could be at a higher rate.
You also need to be wary of the potential impact it may have on your credit history.
A missed payment could sit on your credit file for six years. That will make it harder to get approved for things like a mortgage, car finance, credit cards or personal loans. Speak to a financial advisor first if you have any doubts
What should I do if I’m struggling to pay my energy bills?
Quick tips to help with energy bills include turning your appliances off standby, switching your lights off, spending less time in the shower, avoiding using the tumble dryer where possible, and draught-proofing doors and windows.
If you can afford the initial outlay, adding in roof and loft insulation, fitting solar panels, or installing more thermal efficient windows and doors, are highly effective ways of making your home energy efficient. As well as lowering your bills you’ll also be doing your bit to help protect the planet.
The moment you are, or think you’re going to be, struggling to pay a bill, contact your energy supplier. There are a range of options they can look at offering. From a full payment plan review, payment reductions, or allowing more time to pay. They may eventually opt to put you on a prepayment meter.
If you’re still struggling, and want advice on borrowing money affordably, Northern Community Bank’s friendly and knowledgeable staff are always here to help. Contact us today on 01282 691333.
