Debt advisers warn of impact of gas price increase
on: August 8, 2008, 12:05 pm
Release Author: Debt
Release Summary: DebtAdvisersDirect.co.uk warn that recent large
increases in the price of gas could seriously affect people in
Release Body: Following recent increases in the price of gas,
debt consolidation experts DebtAdvisersDirect.co.uk
warned of the probable impact on those already struggling to cope
with higher living costs, economic uncertainty and record levels
of personal debt.
after EDF Energy’s announcement of its decision to raise
gas prices by 22%, British Gas owner Centrica announced an increase
which would see the average gas bill rise by 35%, taking a ‘standard’
annual £650 bill up to almost £900.
itself,” said a spokesperson for DebtAdvisersDirect.co.uk,
“this increase could be enough to push certain households
into debt – or further into debt – but this is by
no means an isolated instance. Today’s consumers are facing
substantial increases across the board, from food and petrol to
gas and electricity. The cumulative effects can be devastating:
for many, there may simply be no way of finding another £227
per year, which works out to almost £5 per week.”
Mcleod of independent charity National Energy Action summed it
up as follows: “Centrica is the second energy supplier to
put its prices up. We expect this sequence to continue across
all suppliers forcing more than 1 million households in England
into fuel poverty. Across the UK fuel poverty could affect 6 million
households by the end of the year.”
British Gas’ reassurance that the increase would be postponed
until April for the 340,000 customers who qualify for its ‘Essentials’
tariff, the effect on millions of other customers will be immediate.
“With so many demands on their budget, consumers are facing
some tough decisions,” the DebtAdvisersDirect.co.uk
spokesperson continued. “They may feel forced to ‘juggle’
their debts using credit cards, or even to neglect some bills
so they can pay others.
debt advisers with 15 years' experience, we strongly advise against
either course of action. However serious someone's debts are,
there are far better ways of handling them. The important thing
is to seek expert
debt advice - and to do it sooner, rather than later."
many cases, the right debt advice can help people cope with the
extra strain on their finances: “Some people may be able
to free up the necessary extra funds by learning to budget more
effectively, or by renegotiating payments to their creditors.
For others, however, no amount of debt advice will be enough –
if their budgets are already stretched to the limit, they may
need to look into professional debt solutions, such as a debt
management plan or debt consolidation loan.
today’s economic climate, of course, the kinds of debt help
available may be limited, as problems in today’s credit
market are keeping some people from accessing the debt consolidation
loans that could help them regain control of their finances. In
cases like this, an alternative debt solution may be more appropriate.
management, for example, relies not on access to further credit
but on negotiations between an individual's creditors and the
debt management professionals who ask them to accept lower monthly
payments and grant other concessions. As always, we would recommend
that anyone in financial difficulty seek professional debt advice
as soon as possible."
Debt Advisers Direct
Debtadvisersdirect.co.uk helps people with financial difficulties,
providing free advice and tailor-made debt solutions. For more
information, contact Melanie.Taylor@debtadvisersdirect.co.uk
(0845 056 6480) or visit the debtadvisersdirect.co.uk
website at http://www.debtadvisersdirect.co.uk/.