Posts Tagged ‘soar’

The number of energy customers entering debt repayment arrangements soared in the third quarter of 2009 with the average debt rising by 20 per cent annually. Figures from regulator Ofgem showed that the recession, as well as a continued increase in bills, has hit consumers’ pockets hard in the last year. uSwitch.com noted that the cost of energy has risen by £327 or more since beginning of 2008. The report indicated a 21 per cent increase in gas customers starting new debt solutions, compared to the previous three months. The figure was 13 per cent for electricity users. Kevin Still, director at EuroDebt, said that “utility payments should be prioritised”, adding that “arrears on gas or electricity bills are normally signs of more serious debt problems”. As a debt management company, EuroDebt would prioritise the payment of energy bills and any arrears on these as part of setting up a Debt Management Plan (DMP).

Many UK motorists could find themselves needing debt management support as a result of soaring car insurance premiums. This week the AA reported that the cost of car cover increased by seven per cent in the final quarter of 2009 the largest rise since records began. This takes the average quoted premium to just over £1000. It seems that those looking for the cheapest deals are suffering heavily. The company’s ’shoparound’ premium – which tracks the cost of the lowest priced quotes rose by 11 per cent over the same period. The additional cost will be an unwelcome extra on top of rising energy bills and squeezed household incomes. Kevin Still, director at eurodebt, said: “One person’s debt spiral can impact other motorists who may already be in financial difficulty, as honest policyholders bear the brunt of rising fraud and uninsured drivers. “Many people need a car just to support their income,” he added, “especially if they live in rural areas. It is another factor fueling the increased need for debt advice.”