Debt management may help following end of fixed price energy bills

18/02/2010

Households struggling to balance their debt could face further difficulties if their energy bills increase following the end of a fixed price plan.

Debt management may be needed by consumers in order to balance their finances if they are among the many who could soon see their energy bills rise by as much as £250.

uSwitch.com has warned that this could happen when a lot of fixed price energy plans (some of which began as far back as 2006) will finish in March.

Consumers could be left with something of a shock as prices suddenly rocket up to today's levels - some of which are 68 per cent higher than those in 2006.

Thomas Lyon, energy expert at the website, commented: "Many of the households about to lose the protection of a fixed price energy plan are coming back onto a market that will look very different from a few years ago.

But Kevin Still, Director, EuroDebt believes this could provide some with an opportunity to get a better rate.

"If an individual or family is not tied into a lengthy existing contract, we strongly believe they should be actively looking at switching provider to take advantage of the reduction in prices," said Mr Still.

He added: "This has become an increasing area of focus for EuroDebt with families being able to achieve annual savings of between £200 and £300 when they switch.

"This saving can not only help them manage their day to day finances better but significantly accelerate the rate that they become debt free. And by switching they may be able to get better flexibility in the method of payment to the utility provider, perhaps moving from upfront payment meters to monthly direct debit."

Posted by Fiona Smith

Tags; Housing Debt and Bills,

• Share
• 
• 
• Store
• 
• Follow
•