Debt reduction hampered by rise in energy prices

Britons with debt problems could face continuing financial difficulties over the coming year due to increasing energy costs.

The last of the ‘big six’ energy suppliers in the UK raised their prices meaning that the vast majority of Britons are now facing significantly higher energy bills in comparison to six months ago.While the other five have raised their rates over the last few months, taking advantage of the winter temperatures, EDF made a promise to their customers that they wouldn’t follow suit until March at the earliest. They announced this week that their rates will go up on 2nd March.Households on its standard tariff will see their gas bills rise by an average of 6.5 per cent, while electricity customers will face a rise of 7.5 per cent meaning customers will pay an extra £72.50 a year.Martin Lawrence, managing director of energy sourcing and customer supply at EDF Energy, said: “Although we regret the need to raise prices, we held out for longer than all of the other major suppliers and we hope our Winter Price Freeze Guarantee shows that not all energy companies are the same.“We have delayed this increase until the end of a particularly difficult winter, which included the coldest December in 100 years.”At the end of last year npower were the first of the ‘big six’ to raise their prices. Scottish & Southern, British Gas and Scottish Power followed suit soon after, before E.ON also raised their prices in January.According to the price comparison website moneysupermarket.com, customers might want to consider changing to fixed tariffs if they are on standard plans. Although more expensive than the cheapest tariffs offered by each supplier, they are now much cheaper than the standard plans: the cheapest average fixed bill is now from Scottish & Southern and costs £914.81 per annum which is £193.61 cheaper than the average standard tariff.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Debt reduction hampered by rent increases

Tuesday 1st February 2011

A study by Paragon Mortgages has revealed that more than half of the landlords they recently interviewed said they were planning to increase the amount of rent they charge by at least four per cent in the coming year.

The website http://www.money.co.uk/ has consequently calculated that this will lead to the average UK rent increasing by £550 per annum, meaning many Britons will be put under further financial strain at a time when money worries are already at the forefront of many people’s minds.This increase is due to the problematic state of the housing market, with many people finding it increasingly difficult to get onto the property ladder. Speaking to moneyworries.co.uk, Hannah Maundrell – head of content at money.co.uk – explained: “The mortgage market has still not really opened up so many people who want to buy have no option but to keep renting. Unfortunately for them, simple supply-and-demand economics means that this pushes up the cost.”This increase in the price of being a tenant is just one of the costs of living set to go up in the near future – along with, among others, fuel and food prices – which will only add to the obstacles barring Britons from paying off their debts. Personal debt in the UK has reached nearly £1.5 trillion, and during the second quarter of 2010 banks wrote off £3.5 billion of consumer borrowing, up from £2 billion during the first three months of the year. Personal insolvency rates have also risen to record levels, and the situation is compounded by the lack of access to credit that the average Briton is currently experiencing.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: hampered,increases,reduction

Debt reduction hampered by rise in energy prices

Wednesday 9th February 2011

Britons with debt problems could face continuing financial difficulties over the coming year due to increasing energy costs.

The last of the ‘big six’ energy suppliers in the UK raised their prices meaning that the vast majority of Britons are now facing significantly higher energy bills in comparison to six months ago.While the other five have raised their rates over the last few months, taking advantage of the winter temperatures, EDF made a promise to their customers that they wouldn’t follow suit until March at the earliest. They announced this week that their rates will go up on 2nd March.Households on its standard tariff will see their gas bills rise by an average of 6.5 per cent, while electricity customers will face a rise of 7.5 per cent meaning customers will pay an extra £72.50 a year.Martin Lawrence, managing director of energy sourcing and customer supply at EDF Energy, said: “Although we regret the need to raise prices, we held out for longer than all of the other major suppliers and we hope our Winter Price Freeze Guarantee shows that not all energy companies are the same.“We have delayed this increase until the end of a particularly difficult winter, which included the coldest December in 100 years.”At the end of last year npower were the first of the ‘big six’ to raise their prices. Scottish & Southern, British Gas and Scottish Power followed suit soon after, before E.ON also raised their prices in January.According to the price comparison website moneysupermarket.com, customers might want to consider changing to fixed tariffs if they are on standard plans. Although more expensive than the cheapest tariffs offered by each supplier, they are now much cheaper than the standard plans: the cheapest average fixed bill is now from Scottish & Southern and costs £914.81 per annum which is £193.61 cheaper than the average standard tariff.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

Send To Friend      Print      RSS Feed      News Archive
If you have any queries about this news story or our news section, please contact us

View the original article here

Read more »

Posted in: energy,hampered,Prices,reduction