Personal Finance Blog

Leave high energy bills out in the cold

According to moneysupermarket.com, the recent cold snap will cause winter energy bills to significantly rise – particularly as Brits typically utilise approximately 40 percent of their annual energy consumption throughout the winter period.

Therefore, the price comparison site has offered some top tips for minimising gas and electricity bills:

• Turn the thermostat down – even by just 1°C, which could lead to a saving of 10 percent on annual heating bills.
• Switch off electrical appliances rather than leaving them on standby as this still uses power.  For example, a computer on ‘sleep’ mode will reportedly continue to use 75 percent of its energy.
• Invest in insulation as 25 percent of heat is reportedly lost through roofs that are not properly insulated.  Pensioners and those on low incomes could be entitled to a grant for this purpose.
• Only heat rooms of the house that are utilised the most, and purchase a low energy heater.
• During thewinter it can pay to close curtains as soon as dusk sets, as they keep heat in.
• Switch to energy saving light bulbs to save up to £40 during the lifetime of the bulb.
• Purchase a microwave oven as they reportedly use far less energy than traditional cookers.
• Avoid draughts around doors by purchasing a DIY draught excluder pack, which can be found in most DIY stores.  Good draught exclusion around an average terrace could reportedly save an estimated annual sum of £25.
• Double-glazing can reportedly reduce heat loss by 50 percent, thereby resulting in an annual saving of approximately £100 on bills.
• Do not fill the kettle with more water than required – it will then boil faster, thus using less energy in the process.
• Have a shower rather than a bath, as the former uses around a third of the water.
• When using a washing machine, turn the temperature down to 30°C.  Washing powders are now so efficient that they do not need to be used at high temperatures.  Better still, wash by hand and only use the spin function of the washing machine.

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Homeowners who would like to improve the energy efficiency of their property, but do not have the funds required, could consider taking out a secured loan for home improvemets.  One of many finance options available, a secured loan for home improvements could allow borrowers to embark upon an array of projects around the home.  For example, roofs could be adequately insulated and single-glazed windows could be replaced with double-glazing to reduce heat loss.  Not only could such actions reduce heat loss, but they could also reduce energy bills.

Energy bills are met with a frosty reception

According to a new survey conducted by Which? Switch, the recent cold snap has caused many consumers to be concerned about paying their energy bills.Findings show that 65 percent of respondents have been paying more thought to their energy bills as a result of the freezing temperatures.  What’s more, it was revealed that 38 percent were ‘worried’ about paying their energy bills.

In order to meet the cost of bills, some people were found to be utilising either their own savings or their children’s.  Furthermore, others admitted to reducing alternative expenditure by sacrificing gym memberships or holidays.

Upon investigating the methods that people adopt to stay warm amid cold spells, Which? Switch uncovered five top approaches as follows:

1. 84 percent wear additional clothing.
2. 73 percent have a warm drink.
3. 40 percent have a ‘filling meal’.
4. 39 percent blocked draughts around doors and windows.
5. 37 percent remained in bed.

In addition, it was found that 31 percent have either called their energy provider to ensure that they are on the cheapest available tariff or switched energy providers.

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Homeowners whose properties tend to be a little nippy during cold weather due to requiring maintenance could consider taking out a secured loan to fund any work required.  One of many finance options available, a secured loan for home improvements could allow borrowers to rectify a number of problem areas.  For example, a roof that is in a state of disrepair could be replaced to ensure that the property is retaining as much heat as possible.  Additionally, any draughty doors or windows could also be replaced to further enhance heat retention.  A secured loan for home improvements could allow for a chilly house to be converted into a warmer home.

44 percent rely on more than one breadwinner

According to Scottish Widows, the level of debt amongst parents with dependent children is significantly rising.As such, 60 percent of the 6.6 million UK households with dependent children rely upon two or more salaries to get by.On the whole, it was found that 44 percent of UK households rely upon more than one breadwinner in order to ‘maintain a comfortable standard of living’.

Scottish Widows’ protection director, Clive Allison, commented: “The days of one parent going out to work while the other takes care of the family is just not an option for many people.  Nearly half of families with dependent children now rely on two incomes to maintain a decent standard of living, and as our stats show, this isn’t likely to ease off any time soon.  For many families, sacrificing half their income when they have children is a luxury they just can’t afford.”

In terms of mortgage debt, it has been revealed that this stands at £91,648 for the average household with dependent children.  This figure reportedly stood at £88,500 in 2009.  In contrast, findings show that those without children do not have as much mortgage debt, with an average sum of £73,293 – which fell from £77,500 last year.

With regard to short term debt over the past three months, it was found that the average household with dependent children has carried in excess of £8,653.  In contrast, research has shown that the average household without dependent children has carried £7,003 during the past three months.

Commenting further, Clive Allison said: “The increase of debt for those with dependent children is worrying.  People are leaving themselves exposed to a lack of income should anything happen to the main breadwinner, and large personal debt to repay on top of this could make things even more difficult.  Families need to make sure they protect themselves financially so if they do get into difficulties they have the vital back up in place to look after their families and loved ones.  If households do not have sufficient protection, such as life cover and critical illness cover for any of these circumstances, many could be left struggling.”

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Homeowners who are juggling multiple debt repayments each month could consider tying these commitments up into one place.  One of many finance options available, a secured loan for debt consolidation could allow borrowers to reduce several monthly repayments down to just one.  Furthermore, this single monthly repayment could even be lower than existing outgoings.  However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.

Prevent problematic pipes

Following weeks of freezing temperatures LV= home insurance has offered advice to assist homeowners in preventing damage to their property during the ‘big thaw’.

• Ensure that no pipes have frozen by checking that all internal and external taps are working.
• Enable a frozen pipe to thaw out by opening the tap that is closest to the part of it that you believe is frozen.  This will allow the melted ice to flow more easily.
• If a frozen pipe is discovered in the attic, open the hatch to allow warmer air to circulate.
• Use a hot water bottle, a cloth soaked in hot water or a hair dryer (ensuring that it does not come into contact with water) to thaw a frozen pipe.  Start at the end of the pipe nearest to the tap and work towards the cold water tank.
• If it is suspected that a pipe has burst but the water in it is still frozen, switch off the water at the mains and turn off the cold water tank stopcock.
• Turn on all cold taps and flush the toilet a few times to drain the cold water system and to reduce water pressure.
• Turn the central heating off, along with any heaters, and turn on all hot taps to drain the hot water system.
• Get in touch with a local plumber or home insurance emergency helpline for immediate assistance.
• Let neighbours know where the stopcock is just in case a pipe bursts whilst the property is vacant.  One less hour of leaking could save thousands of pounds worth of water damage.
• Move any furniture away from a frozen pipe prior to attempting to rectify the situation.  This should keep damage to a minimum should the pipe burst.
• Ensure that heavy snow fall has not damaged guttering; otherwise residual water could cause property damage.
• Be sure to check any vacant properties that are owned, or any properties that are close by.
• When temperatures are due to drop overnight, leave the heating on low to avoid frozen pipes.  If an ‘anti-frost’ mechanism is in place, this only applies to the boiler and not all of the pipes as well.

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Homeowners whose properties are in need of maintenance to withstand the elements could consider taking out a secured loan to fund any work required.  One of many finance options available, a secured loan for home improvements could allow the borrower to embark upon a range of projects in and around their home.  For example, a roof that is in a state of disrepair could be replaced to ensure that it is watertight and to enhance heat retention within the property.  Furthermore, homeowners whose properties have experienced water damage could utilise secured loan funds for the purpose of refurbishment and redecoration.