Debt worries increased by energy bills?

Those who are trying to clear their debts may not be reducing their energy bills as much as they thought they would when they took out the service.

This is because research carried out by uSwitch.com discovered seven million households in the UK have taken out a deal from a door-to-door salesman, with 22 per cent of them observing they do no think they ended up with a good offer.

A total of 32 per cent of consumers who were questioned said they believed there needed to be better controls over how direct selling is regulated to ensure people do not lose money. With 59 per cent of respondents admitting they feel pressured in these meetings, it could be that they accept a contract that is not best for their financial situation.

There is a belief by a number of people – 37 per cent – that not enough information is furnished during these encounters. Ultimately, overpaying for energy could form part of a series of measures that could lead to debt consolidation.

Ann Robinson, director of consumer policy at uSwitch.com, said: "It is vital [direct selling] is strictly monitored and regulated to ensure that people are not left out-of-pocket by being switched to a worse energy deal than the one they are already on." She added Ofgem is right to ensure the law is being instigated.

Mark Todd, director of energyhelpline.com, noted between 40 per cent and 50 per cent of people who have chosen this method have failed to benefit from any savings. His advice for Britons who are considering changing their policy, which could include individuals trying to clear their debts, is to never do it on the spot. The specialist continued these types of offers should also be double checked independently before progressing with them.

Posted by James Francis