Increasing energy costs coupled with harsher British winters in recent years have made changing energy providers a popular move among consumers. This is a practical strategy for those seeking maximum savings on their utility bills, as it allows for better financial management. Finding a great deal on energy expenses can lead to significant savings, which can be allocated to other areas of need. For those struggling with debt, saving on energy costs can positively impact their financial status.
Numerous websites offer comparative views of different energy providers, enabling customers to switch easily. These websites simplify the process by comparing available deals in your locality based on your postcode, current energy supplier, and payment method. After comparing the options, you can apply to switch providers by filling out an online application.
Switching can be smooth if you maintain a good credit rating and are debt-free with your existing energy provider. However, it can be challenging if otherwise. Energy debt in the UK has surged due to tougher winter conditions and inflated prices by energy companies. A uSwitch study revealed nearly five million UK households are grappling with energy debt.
One solution to facilitate switching providers is exploring various debt solutions. These solutions, such as a Debt Management Plan (DMP), let you make single periodical payments, which are then distributed among your creditors. Regular repayments may enhance your credit rating, making the switch process more seamless.
Debt consolidation is another viable option, allowing you to combine various debts into a single loan for easier repayments. It promotes financial independence and is a less severe alternative to bankruptcy.
If your energy debt is less than £200 and you are using a prepayment meter, you can typically shift to a more affordable energy package. Switching providers or changing to a more cost-effective deal with your existing supplier might be more complicated if you have a sizable debt and use a standard meter. It’s advisable to reach out to the Debt Advice Group for expert financial guidance and maintain open communication with your current supplier to work out a repayment plan.
