Ever-increasing prices fuel debt problems
Reporter: Dawn Eckersley
Date published: 01 August 2008
OLDHAM Citizens Advice Bureau has been swamped since the credit crunch started to bite.
And staff predict they will have to deal with more queries about debt as energy, food and fuel prices continue to rise.
On Wednesday, British Gas announced a 35 per cent price increase and other suppliers are expected to follow suit.
The cost of food has soared this year with bread up 40 per cent, eggs 37 per cent and milk up by a quarter. There has also been a 34 per cent increase in the cost of fuel.
Christine Whitehead, debt case worker at Oldham CAB, said: “There has been a steady rise in the number of people coming through the doors since Christmas and we are expecting a noticeable rise over the coming weeks due to the recent rise in energy prices.
“We get people who keep switching suppliers to avoid paying bills but this only delays the problem and doesn’t solve anything.
“These people end up with a really bad credit rating and the vicious cycle continues.
“Energy companies do have procedures in place to help vulnerable people work out the best ways of paying for their supply, and we try and sort things out as soon as possible because it is very worrying for people.
“We can discuss a payment plan with the energy firms for those who feel they have tried everything and are at the end of their tether.
“But if someone has a history of getting into arrears the companies may not be so keen to negotiate.
“Some fuel companies have funds in place to offer grants to those who meet the criteria so that is another avenue worth exploring.
“We also help people to maximise their income so we will go through any benefits they may be entitled to but in the current financial climate the cost of living is rising much faster than the amount of benefit payments received.
“If anyone would like to come and speak to us about debt problems, they can call on 0161-620 9317, but please be aware that we are extremely busy at the moment.”
For tips on cutting energy bills, visit www.homeheathelp.org.uk or www.energywatch.org.uk
