I Want to switch but cant afford to settle the arrears

ignorance-is-bliss

Having been paying on estimates for too long I am now paying 100pm gas and 100pm elec on dual fuel BG..... Some of this is arrears of about 300 due to the estimates. If I want to switch, wont I have to settle the arrears ? Is there anyway around this as I cant afford to settle up.

McKneff

No way round it i'm afraid. The wont allow you to move suppliers without settling what you owe them

wornoutmumoftwo

I'm in exactely the same boat with electric (owe #700), I am on a prepayment meter and have just increased my debt repayment to #70 a week so I can get it paid off and get a credit meter installed instead.

whowants2brich

The only thing I can suggest, if you want to switch and cap, is to be very strong, financially, and do something that is great if it works - and dangerous if you aren't very disciplined.

Get a 0% credit card, pay a 2-3% fee for a balance transfer, to get the money into your current account, and then pay off your electricity/gas debt - in one go. You will then be free to kick off the transfer process...

Lock this card away, set up a standing order to pay off the money in equal installments so that at the end of the 0% period, the balance transfer rate is paid off, and then you cancel the credit card.

If you can't get a credit card with a 0% BT rate, then the only thing I can suggest is a short-term agreed overdraft if you can - what you'll pay over the month or two in interest may well be dwarfed by the potential rises in gas/electricity, if you can't lock in to a fixed price tarrif...

These may work for some people, might not work for others - but in any event, I hope it all sorts itself out eventually. Good luck!

ignorance-is-bliss

Dont get me started on my credit card debt and lack of discipline...... Thanks for the ideas though. My only concern is applying for another credit card on top of the 4 I have already with a combined limit of 30K, may adversely effect my credit rating as I am hoping to move house again soon and need to top up a little on the mortgage to get the cottage of my dreams. I take your point about the cost of not getting a fixed energy deal versus the cost of borrowing so will seek to balance this out soonest with some maths....