IVA could tackle green debt

29/07/2010

IVA could tackle green debt

Families already struggling to meet their monthly payments may be forced to turn to debt solutions such as an IVA or a Debt Management Plan as experts have predicted a sharp rise in future energy bills.

It comes as new government policies intended to switch the country onto a lower carbon footing could end up pushing up prices as well.

An announcement by Energy Secretary Chris Huhne has outlined plans to make Britain's energy consumption greener, with the ultimate aim of cutting carbon emissions by 80 percent by the year 2050.

To achieve this he has announced 32 separate measures that include smart meters, nuclear power stations and wind turbines.

Speaking in the Commons Mr. Huhne promised "a clear strategy for creating the 21st-century energy system that this country urgently needs for an affordable, secure, low-carbon future."

However the Energy Secretary's own department have admitted that the measures could push up electricity prices by a third and gas prices by up to a fifth.
It's thought that the average household gas bill could rise from £620 to £732 and the average electricity bill from £500 to £665.

Overall the move could add around £300 extra a year to utility costs.

The government hopes to tackle this by getting people to use less electricity, claiming that by installing energy saving measures, such as insulation and solar panels, consumers will be able to mitigate nearly of the expected price rises.

However Audrey Gallacher, Head of Energy Policy at watchdog Consumer Focus, said that "there is no escaping the fact that steps to transform our energy system have a huge price tag and that this is going to impact hardest on the poorest consumers."

If you're concerned about your ability to meet your monthly repayments and are already struggling with a large amount of unsecured debt, such as credit or store cards, then call ClearStart today to see how our debt advice can help.

We can outline the full range of debt solutions available and find the one that is most appropriate for your needs.

If you owe more than £15,000 then an Individual Voluntary Arrangement (IVA) can help you to get debt free in just five years.

If you owe over £3000 then a Debt Management Plan can help you lower your monthly repayments and pay more towards the debt itself, rather than simply paying interest on the money owed.

Whatever your debt situation ClearStart's friendly and professional debt advisers are standing by, so call now and get rid of your debt for good. ADNFCR-3106-ID-19912243-ADNFCR