9th June '08 - Fuel Prices Provoke Tighter Debt Management
For the 38% of people living in the UK who worry about how they will, if at all, be able to meet their mortgage, credit card and loan debts, the Government’s recent moves to ease increasing fuel and energy poverty will be viewed soberly.
Debt management plan expert Gregory Pennington comments on the reality facing many of these consumers, saying, “In an economic slowdown like we’re experiencing today, creditors will obviously see an increase in the number of borrowers who can’t keep up with their repayments. As a result, it’s more important than ever to find a realistic way forward in each case, and this is where a debt management company can help.”
“By reducing an individual’s monthly outgoings to unsecured creditors, a well-structured debt management plan will free up the funds they need for food, fuel and other necessities. At the same time, it will take the lender’s interests into account, ensuring all monies are repaid as soon as realistically possible.”
Whatever the case, since most UK households most acutely feel the effects of fuel price hikes during the winter months, the true effectiveness of the latest Department for Business, Enterprise and Regulatory Reform measures will not be understood until at least the autumn of next year.
Despite this, Environment Minister Phil Woolas is adamant that people should not view fuel prices simply as a seasonal problem. He said, “Fuel poverty isn't just a winter issue - it's about working all year round to improve the homes of some of the most vulnerable people in this country, and that's something the Government is determined to do.”
However, for those affected consumers who feel that a debt management plan may represent their best chance of financial stability, Gregory Pennington advises caution, commenting, “People may have more options available than they realise, and we would never advise a borrower to enter into a debt solution without a thorough examination of the alternatives.”
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