Practical tips to help you improve your credit rating and avoid expensive high interest loans
Many people with pre-payment meters are already struggling with debt and tend to be low-income households.
In the worst case, Co-Operative Energy had a gap of £405 between those paying by direct debit and those with pre-payment meters (although they say they are now cutting their rates to reduce this!)
For more on this please check out – Prepay meters hit the poorest hardest – Citizens Advice
So to avoid the pre-pay energy meter trap consider the following energy-saving tips so that you can afford to pay direct debit and enjoy cheaper energy:
1. Save energy – turn electrical items off when they are not being used; TVs on standby use a surprising amount of power.
2. Benefits – Make sure you are receiving all the benefits you are entitled to. You might, for example, be eligible for a cold weather payment at certain times of the year.
3. Compare energy prices – try comparison websites to make sure you’re getting the best possible deal. It is worth the time to save some money
4. Apply for a grant – you could be eligible for an energy efficiency grant to help with home insulation etc.
5. Loft insulation – if you don’t have loft insulation you are literally sending your money out through the roof.
6. Energy monitor – if your bills seem to be growing to try investing in an energy monitor to see where you might be able to reduce your energy use.
7. Energy efficient appliances – if you’re buying new appliances try to choose ones with a better energy rating. Items including washing machines, fridges and freezers are all rated now.
Direct Debit – If you can, pay your bills by direct debit, most suppliers will give you a discount for this. You might also be able to use a flexible payments scheme. Contact your supplier for more information.
If you are experiencing short-term financial difficulties try our 7 Tips to avoid switching to a pre-pay energy meter.
You have probably seen that we are online guarantor loans compare website.
We have written this post as we passionately believe that saving money should be the answer rather than borrowing more, but in reality, realise there are times when this is not possible.
So we specialise in guarantor loans, generally the least expensive loan option if you have a poor credit rating. To find out more see our FAQs.