- 18
- Dec
Homeowners could well be on track to experience an increase in financial difficulties over the course of next year, SimplySwitch has claimed.
The announcement comes as npower has reported that its wholesale price tracker tariffs are due to rise in 2008. Gas prices are to go up by about a fifth (17 per cent), while electricity will increase by some 13 per cent. Meanwhile, British Gas announced last week that it too is to hike up costs on its tracker tariff next year. As a result, Karen Darby, chief executive of the price comparison website, suggested that consumers could well see their attempts at money management come under more strain, as they also face increased petrol costs and higher mortgage rates. This could see homeowners not only struggle more to make payments on utility bills but also on areas such as secured loans and credit cards.
She said: “Historically, when one of the big suppliers increases prices, the others are quick to follow. Many analysts are now predicting price rises of around 15 per cent early on in 2008. If this happens, customers will be forced to pay an extra 131 pounds per year in energy bills. With petrol prices rising, the cost of mortgages still high and the inevitable financial hangover from Christmas, householders will really feel the pinch early in the new year. ”
Although prices on any energy provider’s standard or online tariffs are yet to go up, SimplySwitch did point towards comments by Centrica which paint a picture of future financial difficulty. Earlier this week, the owner of British Gas indicated that if high wholesale prices are to continue then “a more difficult environment for retail energy suppliers” will come into effect in 2008. The utilities company reported “we will continue to monitor this with regard to future pricing policy”. Should consumers face a rise in gas and electricity costs, their ability to make repayments on personal loans and other sources of financial demand will be compromised.
However, Ms Darby claimed that for those looking to protect themselves against any future rises in an attempt to secure their financial future “there are still some highly competitive capped deals available”. She stated that although such offers have previously been seen as expensive, some of these tariffs are now “almost as cheap as the UK’s best online deals”.
Consumers worried that higher energy bills will have a negative impact upon their finances, however, may wish to consider taking out a debt consolidation loan. In making an application for such a loan, borrowers may well be able to pay off several demands on their spending at once, thus leaving them with a single low-rate monthly repayment. A cheap consolidation loan could be useful for a rising number of people, after Philip Hammond, shadow chief secretary to the Treasury, claimed that following the five interest rate rises by the Bank of England since August 2006, consumers could see their levels of disposable income fall as more money goes towards utility bills, loans and other monetary demands. A consolidation loan could be helpful to those struggling to handle incomings and outgoings.
All About Loans providing you with breaking debt consolidation loans news.
