Wednesday 6th of January 2010
The average UK household faces an annual energy bill of £1,239, a new report reveals, which could see people put unsecured debt on the backburner in an effort to keep their home heated and powered.
According to uSwitch.com, this marks a 36 per cent increase from the start of 2008. With higher energy bills, Britons may have let their unsecured debts rise as they have less cash to meet repayments.
However, they may find an individual voluntary arrangement (IVA) answers this problem of what payments to prioritise.
An IVA can freeze the interest on unsecured debt and merge all repayments into a single, monthly and more controllable sum. With less money being uneaten up by debt, people could be more confident about meeting their energy bills.
With the average energy bill only having £54 knocked off it by this year’s price cuts, then repaying debt through an IVA could be an attractive solution for those people worried about running a home, especially if they have children.
Will Marples, energy expert at uSwitch.com, advises: "Online energy plans are around £300 a year cheaper than standard energy plans - this is a very simple saving for any household to make."
By Hayley Jones
- 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
- IVA FAQs could help you boost your pension pots
