Monday 25th of January 2010
If you are one of the many energy customers who have entered into new repayment arrangements to service your gas and electricity debt then you may have left your credit card bills on the backburner, although an individual voluntary arrangement (IVA) could help with this.
Keeping your home warm and running could be more important to you than clearing what you owe on credit cards, which many deem not to be an essential monthly expenditure.
The Office of Gas and Electricity Markets (Ofgem) reveals that between the second and third quarters of 2009, there was a 13 per cent surge in electricity customers entering into debt arrangements with their provider.
During the same period 21 per cent more gas customers made similar arrangements. If a large part of your household finances goes on energy bills and other costs then an IVA could help answer your credit card debt.
An IVA can freeze the interest on your plastic balances, preventing your debt from climbing further, which could prove ideal if your coffers are currently feeling the pinch.
Commenting on the Ofgem figures, Thomas Lyon, energy expert at uSwitch.com, says: "Energy bills are substantially higher - £327 a year more - than they were at the beginning of 2008 even after suppliers cut their prices last year."
By Rachel Powell
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Mortgage debt 'becoming more affordable'
