Advice needed. Really can't afford to pay

thabin · 15 January 2009 at 5:52PM

I have been paying a direct debit of £48 for my electricity and now BG say they are increasing this to £118 and that I owe them £400 arrears so that £48 of the £118 each month will be arrears.

I really can't afford £118 a month as I'm struggling at the monent to keep my head above water.

They gave me the option of having a pre-pay meter fitted which I initially agreed to but I have since been told that this will possibly mean me paying even more than £118 per month.

So I have phoned BG and asked for a debt payment plan rather than a pre-pay meter and they aren't giving an inch, they insist on the £118 direct debit and have told me that if I miss one payment of this they can force entry and install a pre-pay meter anyway.

Any help or advice would be so very much appreciated as I feel like I'm well out of my depth here.

Magentasue · 15 January 2009 at 6:01PM

I think you're right to worry about the prepayment meters. I've just looked at a thread where someone is putting £70 a week into meters and, while this might not be typical, you will pay more than you do now.

From BG's point of view, if they don't set the DD high enough to cover your usage (£48 wasn't enough) and recover the debt, that £400 arrears will just get more and more.

You need to use less - you would if you were on prepay because you wouldn't be able to afford to feed the meter to get what you're using now. You also need to work out how much you can afford. This is not a popular view, but I would say you need to forget about TV, phones, internet and other non-essentials and use the money you save to pay your electricity bills. People today think a phone and TV are essential but they're not. Cut back everywhere you can, pay the debt and start again.

If you can't reduce your outgoings or increase your income, see the CAB or similar and get some advice. Prepayment will probably be your only option. Finally, do a search on this board for the BG fund to help people struggling with their bills - can't remember what it's called.

Hope you can sort something out.

Fire_Fox · 15 January 2009 at 6:28PM

You need to work out where all that electricity is being used - do you have the heating on a lot, or hot water or the tumble dryer? Also how well insulated is your property?