Debt Advisers Direct say careful planning still key to surviving
on: September 11, 2008, 2:28 am
Release Author: Debt
Release Summary: Debt Advisers Direct welcome a planned Government
scheme to help households that have fallen into fuel poverty,
but have reminded consumers that there is still plenty they can
do to help protect themselves against rising household costs.
Release Body: As the Government prepare to announce a new scheme
that is set to help the millions of households that have fallen
into fuel poverty, Debt Advisers Direct (www.debtadvisersdirect.co.uk)
have welcomed the scheme, but have reminded consumers that there
is still plenty they can do to help protect themselves against
poverty is usually defined as when households are spending more
than 10% of their total monthly income on keeping their homes
adequately heated. In early 2008 it was estimated that around
4.4 million households in the UK were living in fuel poverty.
with energy costs jumping up by as much as 30% with some providers,
and with others set to follow, the threat of fuel poverty is increasing.
spokesperson for Debt Advisers Direct said: “The
rate at which energy prices are rising means that even families
who would have previously considered themselves financially comfortable
are beginning to feel the strain. Making compromises on other
costs has become commonplace.
providers can help to bring costs down to an extent, but it might
not be long before all providers raise their prices, which could
mean sacrifices in other areas are needed.
consumers should be trying to put at least a small amount of money
aside in a savings account every month. If prices shoot up unexpectedly,
savings could be a very helpful financial safety net that could
prevent people falling into debt.”
spokesperson said that the worst hit are lower-income families,
who might not have the extra funds available for rising fuel costs.
“For those on lower incomes, fuel poverty is a particularly
serious matter. There is a choice: turn the heating off, or keep
yourself warm and suffer the consequences. We have seen large
numbers of people being pushed into debt because of energy costs.”
spokesperson followed that if consumers do find themselves struggling
to balance debts with increasing costs of living, it’s essential
that they seek debt advice
before the problem grows out of control. “There are
a number of debt solutions that are designed to reduce monthly
outgoings and simplify finances, which could be a great help in
these difficult times.
could be a debt management plan, in which a debt adviser works
with the owner of the debts and their creditors to work out a
new repayment plan, usually resulting in lower monthly payments
over a longer period of time.
some people, a debt
consolidation loan is more effective – a new loan is
taken out to pay off the existing debts, after which it is repaid
in single monthly payments. Debt consolidation loans can also
be set out over a longer period of time, so monthly payments will
be lower, although the borrower will usually end up paying more
in interest in the long run.”
more serious debts of £15,000 or over, an IVA (Individual
Voluntary Arrangement) may be more suitable. If you are in debt
but are unsure about how to tackle it, contact a debt adviser
for further information.
Advisers Direct are a debt management company based in
Salford Quays, Manchester. They offer a range of debt advice and
solutions, including debt consolidation, debt management plans
and IVAs (Individual Voluntary Arrangements).
Web Site: http://www.debtadvisersdirect.co.uk
Details: Debt Advisers Direct
South Langworthy Road
0845 056 6480