Our free debt advice is designed to help you regain control of your finances. This article looks at how an energy debt management plan can save you money on gas and electricity bills.

Successful debt management is like running a car – it requires regular services, spot checks and maintenance. It is easy to think of debt management in terms of loans and credit cards only, but there are many ways in which you can reduce outgoings in order to make savings and reduce debt.

Energy is something we all have to pay for but the savvy among us shop around. Gas and electricity providers are hungry for business and in the utility jungle there is more than one king. This means you can probably save money on your utility bills if you are prepared to do a little homework and assess the competition.

Shopping around for the best utilities deal is easiest online. If a quick search proves you can get a better deal elsewhere, then changing providers is simple and most will allow you terminate after a 28-day notice period – doing so could save you up to £400 a year.

Debt Management Advice & Utility Bills

1 Shop around online

U Switch estimate prices based on your most recent bills and patterns of energy use. U-switch is then able to determine which utility companies supply your area with gas and electricity by using your postcode, giving you the chance to do a quick price comparison.

Online tariffs and dual-fuel plans – gas and electricity – generally offer the best value for money, so you may find using one provider for everything is the way to go.

2 Savings Vs Service

If you are new to debt management, then you may think that saving money is the be all and end all. In most cases it is, but there is an exception. Saving money by switching to a company with an inferior customer service is likely to create a false economy.

A false economy is where the long-term costs negate any short-term gains. If you are on the telephone every other month questioning bills, complaining about your service or wondering why your electricity has been cut off, then your phone bill is likely to rob you of any potential savings. Again, our advice is do your homework and search online for reviews and information on any utility company – they may be cheaper for a reason!

3 Making the switch

Switching is extremely straightforward and is usually done with the minimum of inconvenience. Simply call your current energy provider telling them of your intent to switch.  Don’t be surprised if they offer you a better deal, which may satisfy you enough to stay put.

Hooking up with the alternative energy company only takes a quick telephone call and they will gladly arrange everything for you.

If you have used a comparison website such as U-switch, then following the instruction online will enable you to switch providers with minimum fuss.

The entire process should take around 28 days.

4 Keep switching

Regular spot checks of your energy plan will ensure you are still enjoying the most competitive deal. We recommend you take time every six months to compare your provider with another company and if need be, don’t hesitate to switch again. What was the best deal then may not be now.

Successful debt management requires continual monitoring of ways you can save money and reduce costs. If you snooze you lose!

5 How to complain

Okay, you’ve made the switch and regret it because the service is poor and you’ve had enough. If you would like to make a complaint and have already tried having the issues resolved by your provider, contact the Energy Ombudsman. They will intervene on your behalf and seek an outcome that is in your best interests.
If you would like to get out of debt by lowering your monthly loan repayments, find out how a debt management plan can help you. Alternatively you can call our approved advisers free advice line on 0800 014 7863.