Monday 16th of November 2009
A debt management plan could be one way for cash-strapped families to beat the threat of rising energy bills.
The cost of fuelling a home is set to soar in the next two years as wholesale prices increase from 31p now to 49p next winter and to 57p by 2011, according to Centrica - parent company to British Gas.
Helen Dent, chief executive of household charity Family Action, said: "At this time of recession, Family Action is constantly hearing from the low-income families we work with about the stark choices they face on household spending and their fear of falling into debt."
Larger energy bills could leave thousands of homeowners with less cash to pay off unsecured debts, such as credit card bills, overdrafts and personal loans.
But by using a debt management plan, they could benefit from the work of a financial expert who could reduce interest rates and renegotiate repayment periods.
The anticipated rise in heating, electricity and gas bills comes despite British Gas and Scottish and Southern Energy both reporting healthy profits in recent days.
By Kimberley Parsons
