New data from personal insolvency provider, Creditfix, reveals that those in debt to energy providers have seen their average debt levels skyrocket by over 40% in the last two years.
Creditfix analysed its customer database of 250,000 people to show that, for those where the main creditor is one of the ‘big six’ energy providers, the median debt has increased from £761, in 2021, to £1083 so far in 2023, a 41% increase.
Combine this with the rapidly approaching winter season, which is expected to cause a natural increase in energy bills, then there is no doubt that those who are struggling with their finances will feel the pinch.
This comes at a time when, according to Creditfix’s Personal Debt Index, the average debt levels across the UK currently stand at £18,040 – a 19% increase from 2022 when average debt levels were £14,943.
To help ease the financial burden, Maxine McCreadie, personal debt expert at Creditfix, has compiled a list of 8 top tips to help those worried about their energy costs cut down and save.
1. Switch to LED lighting
Replacing incandescent bulbs with energy-efficient LED lights not only significantly reduces your energy consumption, but also lasts up to 40x longer.
2. Seal leaks and insulate
Properly insulating your home and sealing any gaps in windows, doors and ducts can prevent air leaks, which will reduce the need for heating. Using your hand is a cost-effective way of checking whether you have an air leak, simply place it near the edges of doors, windows and vents and if there is a cool breeze, then there’s an air leak.
3. Set thermostats smartly
By using smart thermostats you can easily regulate your heating by adjusting temperatures and the times they come on and off with ease.
4. Unplug unused electronics
Even when turned off, many electronics consume energy. The average LCD television consumes up to 5W when on standby mode.
5. Wash clothes in colder water
Washing your clothes at a colder temperature boasts a range of benefits. Not only does a colder wash mean less risk of damaging the fabric of your clothes, but washing your clothes at cooler temperatures can also help keep your energy bills down and make your clothes last longer.
6. Reduce ‘Phantom Loads’
Turn off lights when you leave the room, unplug your speakers, chargers and other appliances when not in use to eliminate phantom power.
7. Regular maintenance
Scheduled routine maintenance for HVAC systems and other appliances can help ensure they’re operating efficiently.
8. Conduct an energy audit
A professional energy audit can identify specific areas for improvement, enabling you to prioritise your energy-saving efforts.
Maxine added: “Saving energy is not only an environmentally responsible choice but also a smart financial decision, which is crucial in the current macroeconomic climate to stay on top of bills and reduce the risk of falling into debt.
“While we know that it can be overwhelming, taking those first steps to address money worries can be a huge relief – never underestimate the power of talking and sharing your problems”
Why choose Creditfix?
- Write off unsecured debts over £6,000
- Stop interest and charges soaring
- Reduced payments from £110 per month
