EuroDebt Adds Energy Switching to Complement Debt Management Services

February 2009

Innovative partnership helps families struggling to manage finances www.EuroDebtEnergy.com

Leading debt management provider, EuroDebt, has launched an innovative new Energy Switching Service for its clients. As Director, Kevin Still, explained, EuroDebt believes families and individuals need as much help as possible to improve their financial circumstances.

"Several of the major utility companies have announced price cuts in the last few weeks. But for families and individuals already struggling to manage their outgoings it can be hard to work out what to do to make a saving on their outgoings. And for households who are already in arrears with their existing provider it seems like there is no option to get a better deal. However, our new Energy Switching Service, offered stand-alone or as an integral part of our Debt Management Plans, is designed to help families and individuals deal with existing arrears as well as get them onto a better tariff going forward.

The EuroDebt Energy Switching Service provides all UK households with the ability to shop around for the best tariff for their utility needs - all from the EuroDebt website at www.EuroDebtEnergy.com.

"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. 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."

EuroDebt aims to help consumers take a responsible position with their creditors, especially where they have multiple credit cards and loans, by notifying the unsecured lenders that the individual has entered a Debt Management Plan. This involves no further borrowing and in the majority of instances lenders agree to freeze interest & charges, meaning that recovery activities stop, the debt balance will begin to reduce at a rate based upon the negotiated reduced payments to creditors and the individual can begin to take control of their finances again. Payment proposals are presented to creditors in a consistent manner and all the figures quoted in the income and expenditure analysis will have been verified through a home visit conducted by a EuroDebt debt advisor.

A Debt Management Plan may be for a relatively short period, ranging from 12 months to 3 years or a long-term plan that enables individuals to become debt free, potentially with some equity release for home owners in the future. The flexibility of a Debt Management Plan also allows clients to resume contractual payments where creditors accept EuroDebt's proposals of a reasonable offer for a transitional period until the client's circumstances change, for example when they find new employment or return to work from long-term illness or maternity leave.

EuroDebt, unlike any other fee charging Debt Management Company, is the only debt management business that makes home visits a core component of its 'fact find' process, ensuring a complete picture of each individual's situation is gained. "This is crucial" continues Still.

"At this visit, the debt advisor is able to assess not only priority expenditure, like mortgage or rent, council tax and utilities, but any arrears on these payments. Repayment arrangements to clear arrears are a priority to protect a client's home and family. There are also instances where critical insurances have been dropped, like life insurance and home insurance, which may need to be re-prioritised.

"By adding Energy Switching to the range of services we offer to our clients, which will help them save money on their utility bills, we firmly believe we can help them accelerate the rate at which they become debt free."

EuroDebt's Energy Switching Service is powered by a Consumer Focus accredited calculator, energylinx, which is fully accredited to the new Consumer Focus Confidence Code

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