Energy consumers in debt to their suppliers now owe on average £132 - 5% more than last year, according to a study conducted by uSwitch.

Research shows that, of those in debt, 41% now owe more than they did this time last year while 17% said they owed less.

However, the poll for comparison website uSwitch found the number of UK households owing money has dropped from 6.5 million last year to 5.5 million - or 21%.

The figures follow recent gas price-cuts across the industry due to falling wholesale prices.

USwitch reported household energy bills rocketed by 42% (£381) in 2008 but fell by just 4% (£54) in 2009. Price cuts so far this year average out at 4% (estimated £45).

According to uSwitch, it is predicted that the average household bill will be £1,209 a year once the cuts come into effect - this is still £297 or 33% higher than at the beginning of 2008.

Payplan

If you owe money towards your monthly utility bills and are worried about debt, contact Payplan today for free, confidential advice.

This winter Britain has seen the coldest weather for over thirty years and as a result, energy consumption has soared as people struggle to keep warm.

With the recent fall in wholesale gas and electricity and fears raised over the current cost of energy, especially for the most vulnerable during the recent cold spell, leading suppliers have announced cuts to their monthly bills.

Four of the ‘big six’ energy suppliers have recently announced cuts:

• British Gas applied a 7% reduction on gas, making bills £4.58 a month cheaper.
• Scottish and Southern Energy revealed its prices will drop by 4% on March 29th, seeing a saving of £2.50 a month.
• Npower are set to cut gas prices by 7.1%, bringing a saving of £4.50 for dual fuel customers.
• E.On cut gas bills by 6%, an equivalent to £3.90 a month.

Government Benefits

For those struggling to afford their monthly heating bills this winter, help may be available from the government as they currently offer cold weather payments, the boiler scrappage scheme and warm front scheme.

Alternatively it may benefit you to contact your energy provider directly and discuss your bill.

Payplan

If you are worried about being able to cover your monthly utility bills, contact Payplan today for free, confidential advice and help with debt.

The Office for National Statistics (ONS) yesterday released records of the highest Consumer Price Index (CPI) annual inflation rate for over a year.

The ONS revealed that the UK CPI annual Inflation rate increased to 3.5% in January 2010, a 0.6% rise from 2.9% in December 2009, the second largest ever increase in the annual rate between two months.

This record monthly movement is thought mainly to be due to the increased standard rate of Value Added Tax (VAT) from 15% to 17.5% in January 2010.

Fuel Costs

A further contribution to the recent increase in inflation between December and January came from transport as fuels and lubricant prices rose this year by 2.2%, a record rate of growth compared with a fall of 3.4% a year ago.

Retail Prices Index Affected by Increase

The recent increase in VAT also lead to the strongest Retail Prices Index (RPI) monthly improvement for a December to January period for over 10 years since 1997, with the RPI remaining at the same level.

The last time the RPI had positive growth between December and January was in 1991 when an increase of 0.2% was recorded.

Payplan

Contact Payplan online today for free, confidential debt advice or simply telephone 0800 280 2816 to speak personally to one of our trained, friendly debt advisers.

A recent consultation by The Ministry of Justice is considering setting a minimum amount of debt before a court can order the sale of a debtor’s home.

People who face losing their homes because of debts on credit cards or loans could get greater protection from charging orders if the amount is agreed.

Current Law allows a lender to force debtors, in extreme cases, to sell their homes if they fall behind on payments, this is known as a ‘charging order‘ against a person’s property.

Justice Minister Bridget Prentice Said:

‘We know that only a small proportion of charging orders result in the property being sold, so it’s rare for a debtor to lose their home because of things such as unpaid credit cards…But it’s important that the government consider whether there is a risk that the numbers will increase due to the current situation, and whether this could result in more people losing their homes because of relatively low levels of debt which they are unable to pay.’

The consultation which closes on 30th April 2010, asks whether a minimum level of consumer credit debt should be set in law before an order for sale can be issued.

Payplan

If you are worried about charging orders or falling behind on your monthly payments, contact Payplan today for free, confidential debt advice.

Following today’s publication of the insolvency figures for quarter four of 2009, Payplan, the free debt solutions service, has revealed that calls to its debt helpline totalled over sixteen thousand in January alone.

John Fairhurst, managing director at Payplan, said:

“Although official figures tell us that the UK is emerging from recession, we know from the experiences of those people we help that the effects of the economic downturn are still being felt by vast numbers of Britons.

“We were contacted by more than sixteen thousand people in January this year, who are seriously concerned by their debts. Worryingly, there will be many more individuals who have not yet sought help - the longer the debt is ignored the worse the problem will become.”

Today’s figures from The Insolvency Service reveal that more than 35,574 people were declared insolvent in the last quarter of 2009, an increase of 24.9% on the same period last year.

Of those individuals made insolvent over the three months to December, 17,007 people were declared bankrupt and 13,219 entered into an individual voluntary arrangement (IVA) with their creditors, while the remaining 5,348 signed up to the Government’s new Debt Relief Orders.

Notes to Editors

For further information please contact:

Payplan Press Office
Jayne Newton
jayne.newton@payplan.com
01476 541980 or 07812 736861

Debt Relief Orders

A Debt Relief Order is a cheaper form of bankruptcy for people on low incomes. Introduced in April 2009, they allow those with debts of less than £15,000 and assets of less than £300 to declare themselves bankrupt for a fee of £90, rather than the usual £510.

About Payplan

Payplan is a free debt advice and solutions service that provides impartial advice to people in financial distress. Payplan helps over 100,000 people every year and works closely with organisations in the field of money advice and consumer and employee welfare.

Payplan’s freephone debt helpline is open six days a week, call 0800 280 2816 to speak with an experienced debt adviser. Lines are open 8am to 9pm Monday to Friday and 9am to 3pm on Saturdays. Alternatively visit www.payplan.com.

Recent predictions made by the Centre for Economics and Business Research (CEBR) suggest that the average house price is expected to climb by 6.5% to £178,000 in 2010.

The CEBR also believes that 2012 prices will return to those previously recorded in 2007, with a high of £198,000 expected a year earlier than predicted.

Increased Mortgage Lending

In their market predictions the CEBR said it expected banks and building societies to approve more mortgages, making it easier for buyers to access the money needed to purchase a house, in turn helping to push up prices.

Nationwide

Market predictions released by Nationwide also suggest prices could climb 10% on an annual basis, as the mortgage lender recorded a 1.2% rise in January 2010, more than double the 0.5% gain seen in December 2009.

Nationwide’s Chief Economist Martin Gahbauer claims:

Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007.

www.payplan.com

Figures released by the Office for National Statistics today showed that the economy had grown by 0.1% in the last three months of 2009, marking the end of the UK recession.

Figures show the Gross Domestic Product (GPD) increased 0.1% in the fourth quarter of 2009, compared with a decrease of 0.2% in the third quarter.

Growth in the economy had previously decreased for six consecutive quarters, the longest period since quarterly figures were first recorded in 1955.

Unemployment slows

Although economic growth is slow, other recent recovery signs are emerging as last week’s unemployment figures fell for the first time in 18 months.

The UK has been one of the last major economies to come out of the recession since the recession began in the April - June quarter of 2008.

New research supplied by moneysupermarket.com reveals that the average adult wastes almost half (45%) of their mobile tariff’s minutes and text allowance each month. Staggeringly, many mobile phone users could potentially save £250 a year on their mobile phone bills.

The research for the fourth annual Mobile Money Report found that customers on contractual plans were wasting 137 minutes every month, equating to 27 hours a year for the average pay monthly mobile user.

The research also suggests that adults are now wasting up to 40 per cent more minutes and twice as many texts (compared to the 2007 Mobile Money Report) with the average adult wasting over £250 worth of mobile allowance each year, raking in £13bn every year for the mobile industry.

Mike Wilson, manager of mobiles and broadband at moneysupermarket.com said:

“It’s great that consumers are under their monthly allowance to avoid any extra costs, but it’s also important to get the most out of your contract for what you pay each month. One of the best ways to do this is to assess what your monthly usage is and find a contract that suits you best.”

Contact Your Network Provider

If you have unused messages and calls left at the end of each month it may be useful to contact your
network provider to see if you can save money and cut your monthly bill.

Payplan

If you are struggling to meet your monthly payments contact Payplan today for free, confidential debt advice.

Research conducted by housing charity Shelter found more than 1 million householders have resorted to credit cards in a bid to pay their mortgage during the last twelve months.

The survey highlighted 6% of those who were liable for paying their rent or mortgage had used credit cards as a method of payment, accounting for more than 1 million people.

Further findings saw 1 in 12 Londoners resorting to credit cards to pay their mortgage or rent.

Kay Boycott, Shelter’s director of policy and campaigns said:

‘This is a shocking discovery, that over a million households in Britain are in such desperate circumstances that they need to borrow money on credit cards to pay for basic housing costs’.

Warning

The charity has issued a stark warning to people about the dangers of using credit cards which could result in the loss of their home, warning that defaulting on their credit card repayments may lead to their homes being repossessed.

Seek Advice

The Charity advises those struggling with payments to seek advice immediately. You can find out more information by visiting the Shelter website, offering online advice.

Get Debt Help Now

Payplan offer debt advice on a range of issues. You can contact Payplan online for free advice and support to help manage your debts online.

Figures released this week by Nationwide recorded a rise in house prices from 2.7% in 2008 to 5.9% by the end of 2009.

Housing Transactions Up

As house purchase transactions fell by 65% between January 2007 and November 2008, interest rates hit record lows. As a result, potential buyers with enough cash entered the market, leading to a steady pick-up in housing transactions throughout 2009.

The average cost of a home went up for eight months in a row, and in December they rose by another 0.4% to £162,103.

Martin Gahbauer, the Nationwide’s chief economist predicted interest rates would remain generally supportive for the housing market and mortgage borrowers during most of 2010.

Mortgage Lending

Gross mortgage lending totalled an estimated £12 billion in November 2009, a 10% drop from £13.3 billion in October 2009, and down 14% from £13.9 billion in November 2008, according to new data from the Council of Mortgage Lenders.

Although the 10% fall is a little larger than normal, the CML does not expect this position to change much in the coming months, foreseeing steady market conditions in 2010.

As the snow, ice and cold weather continues to cause havoc this week, people could be feeling financial strain when their next energy bills come through the post, as the UK uses more gas and electricity than usual in the struggle to keep warm.

According to research collected by The Scottish Power Energy People Trust there are over 2 million households throughout Britain already living in fuel poverty, spending more than 10% of their monthly income on basic energy needs (which, especially during Winter of course, includes keeping warm).

Finding help with energy bills is clearly becoming increasingly important.

Energy Suppliers and Charities that Offer Funding

If you’re having trouble paying your energy bills, Payplan recommends checking with your supplier to find out what help is available from them first.

British Gas Energy Trust

The British Gas Energy Trust offers grants to individuals and families in need, to cover arrears of energy charges and other household bills and costs.

To be eligible for an energy grant you must be a customer of British Gas or Scottish Gas.

Additionally, a winter fuel rebate of up to £90 may be available to British Gas’ most vulnerable customers.

Please contact The British Gas Trust for further information.

EDF Energy Trust Fund

EDF Energy currently fund the EDF Energy Trust, offering grants to people who have electricity, gas, telephone and other essential household bill debts.

To see if you qualify for a grant contact The EDF Energy Trust’s website for more information.

Government Schemes

The Government also offer help with various benefit and schemes to help those most vulnerable. If you are over 60 years old, you may qualify for the Winter Fuel Payment. Claims for the Winter 09/10 must be made by 30 March, 2010.

The Government also offer other energy efficient money saving schemes such as free loft and cavity wall insulation and the recent Boiler Scrappage Scheme that has been introduced for this year.

For further information you can also visit the Direct.gov website.

Free Debt Advice

If you’re struggling to afford your monthly utility bills contact Payplan today for free advice on how to manage your debts.

Priority Costs in 2010

Prioritising your costs and debts means using your available money to settle the most important costs and debts first. Usually, the three most important priority costs are:

1. Mortgage and Rent
If you fall behind on your mortgage, your mortgage lender could take legal action by repossessing your house and selling it on. Similarly if you fall behind on your rent, your landlord may try to evict you and take you to court to recover the money you owe.

2. Utility Bills
Failing to pay utility bills such as your electricity or gas could result in providers disconnecting you.

All of the above hold serious consequences that may affect basic survival and security, so it is important to address gas arrears and electricity arrears first.

3. Taxes and Court Fines
If you fail to pay outstanding Council Tax or court fines the court could enforce bailiffs to recover goods from your home.

Unsecured Debt and Non-Priority Bills

They include:

• Credit card and store card debts
• Bank overdrafts and personal loans
• Catalogue arrears

If you are worried or struggling with your unsecured debt or are behind with your priority costs due to spiralling monthly debt bills, then contact Payplan online for free debt advice or call 0800 280 2816.

As a result, the UK’s leading business organisation predicts annual gross domestic product (GDP) growth of 2.5% in 2011, following 1.2% in 2010.

John Cridland, CBI Deputy Director-General, said:

“However, the economy will be on a fragile path of very slow growth, as we continue to feel the lasting effects of the financial crisis.

“Unemployment is expected to continue rising over the coming quarters, but peaking slightly lower than previously forecast, at just over 2.8m in 2010 Q3.

“Although the first few months of 2010 will be difficult, growth will gradually pick up and increasing confidence and demand will lead the UK into a more positive 2011.”

Growth Forecasts for the Economy in 2010:

• 2010 will see a modest annual growth rate of 0.4%, rising to 2.3% in 2011.
• Growth in the range of 0.5% to 0.7% is expected to be maintained through to the end of 2011.
• Average earnings are expected to rise faster over 2011, at 3.9%.

Fraudulent telemarketers based in Jamaica are making unsolicited phone calls to consumers telling them they have won a sum of up to £2.5 million on a lottery sweepstake.

Conned by Phone

The victims received phone calls from operators claiming to be lawyers, bank officials or lottery organisers.

In order to ‘release’ their winnings, victims were told they must send money to pay for taxes, processing fees, insurance or customs duties, many sending their entire life savings.

Violent Threats

Victims of the scam also received repeated calls for further money, and in some cases have suffered threats of violence, arrest and removal to Jamaica if they do not pay up.

For information about how to avoid or deal with scammers, the Consumer Direct website have some useful tips.

If you are worried about your finances contact Payplan today, for free and helpful debt advice.