Debt consolidation experts comment on energy package
Released
on: September 19, 2008, 9:01 am
Press
Release Author: Debt
Advisers Direct
Industry:
Financial
Press
Release Summary: The government’s ‘energy package’
may help some people stay warm and avoid debt this winter, but
leading charities agree it does not go far enough to address the
immediate financial problems caused by high energy prices.
Press
Release Body: Responding to the governments 1 billion energy
package, debt consolidation experts Debt
Advisers Direct reminded consumers
of recent comments by leading charities Help the Aged and the
National Housing Federation.
Despite
enabling households ‘to take advantage of help that could
save them over £300 every year on their energy bills’,
the package met with a lukewarm reception: “Individual changes
which have been flagged by the Prime Minister are sensible and
move in the right direction,” said Mervyn Kohler, Special
Adviser at Help the Aged. “However, they are too little,
too modest and will take too long to address the urgent plight
of many pensioners today.”
The
energy package includes:
· Free loft and cavity wall insulation for some; half-price
insulation for others.
· Increased Cold Weather Payments (paid during particularly
cold periods) from £8.50 to £25 per week.
· An increased Winter Fuel Payment (either £50 or
£100 more).
· Potentially discounted tariffs by the end of the year
for ‘around 600,000’ customers, many of whom will
have a price freeze this winter
“The
measures announced by Gordon Brown may provide some help, but
must be seen in context,” a spokesperson for DebtAdvisersdirect.com
commented. “The average annual energy bill is widely expected
to be more than £1,400 next year – more than twice
what it was in 2005. While everyone appreciates the importance
of long-term improvements to energy efficiency, recent price increases
of up to 35% have left many with immediate financial problems.”
To
quote from The Press Association website: ‘Soaring energy
bills will push one in 10 households into debt with their fuel
supplier by the end of next year, experts have warned. The National
Housing Federation said hikes in the cost of gas and electricity
would force many low-income families to have to choose between
heating their homes or eating this winter.’
The
right debt solution, however, could help borrowers afford both.
“Part of the problem today is the sheer number of price
rises we’ve seen in the past year,” said the DebtAdvisersDirect.com
spokesperson. “Not just energy prices, but others such as
food, rent and petrol.”
“People
with credit commitments can be hit particularly hard by this –
even after they’ve paid their rent / mortgage, food, fuel,
etc, they still need to find the money to service their ongoing
unsecured debt repayments. In many cases, this is simply impossible,
and reducing those monthly debt payments is the only way forward.
This is where debt consolidation can make a big difference.”
A debt
consolidation loan is a simple idea. By consolidating multiple
unsecured debts into a single, large debt, borrowers can reduce
the amount theyre paying each month: Their monthly repayments
may have seemed reasonable when they first took out credit, but
the recent increases in basic living costs have dramatically reduced
the average consumers disposable income.
Debt
consolidation gives borrowers a chance to re-assess their finances
and the speed at which they can pay off their debt by calculating
how much they can afford to put towards their debts in todays
economic environment. As with any debt solution, a debt consolidation
loan comes with both pros and cons, so its vital to seek professional
debt advice
before making a decision.
Web
Site: http://www.debtadvisersdirect.co.uk
Contact
Details: Pennington House
Carolina Way
South Langworthy Road
Salford
M50 2ZY
Melanie
Taylor
melanie.taylor@debtadvisersdirect.co.uk