Tuesday 7th of December 2010
Brits who are being forced deeper into the red as a result of the high costs of energy could decide to ask individual voluntary arrangement (IVA) questions in order to consolidate all their debts into one manageable monthly payment and start over.
A survey published by moneysupermarket.com found that seven out of every ten individuals hold concerns about how they will pay their heating bills this winter.
The investigation was carried out in the light of the news that three of the country's main energy companies have announced price hikes while the UK experiences freezing cold weather and heavy snowfall.
According to the poll of 2,719 individuals, there has been an increase in the number of people who are worried about heating their home during the winter months, from 27 per cent to 40 per cent.
In addition the study revealed that 28 percent of Brits are already struggling to meet their bill repayments, a two per cent rise on the figure recorded in 2009.
"Recent price increases could not have come at a worse time for cash-strapped consumers," said Scott Byrom, energy manager at the price comparison site.
"With many people stretching their budgets to the limit just to get by, the news that their energy bills are increasing at the same time the freezing weather hits has understandably meant many more people are worried about how they can afford to keep their homes warm this winter," he added.
Moneysupermarket.com noted the sub-zero temperatures being experienced by the UK at this time of year, bill payers are having to use more energy to heat their homes, which is placing even more financial pressure on people who are already contending with the cost of the festive season.
IVA questions could be asked by those who are finding the added monetary burden is too much for them to bear, as the arrangement allows them to reach an agreement with their creditors concerning existing debts and pay them off over a five year period.
By Chris King
