Bulb and struggling to pay increased payments

3littlegems

[Deleted User] said:

With the greatest respect, suggestions of new suppliers and tariffs is avoiding the ‘elephant in the room’. The OP may not like the thought of third-party access to her Bank accounts; whether it is Tully or A N Other respected interlocutor, she has to accept that there is a debt problem that needs to be addressed. I worry when I read comments like ‘ I don’t see where I can cut usage’. The simple fact is that a debt has accrued because of under payment. Any increase in payments to Bulb has to cover both under the payments going forward and remediation of the existing debt. If a supplier believes that the customer is just playing for time, they will limit their financial risk going forward by putting in a prepayment meter.

No elephant in the room here! The debt is minor,  what with our hetic lives a pandemic and stuff going on it was something that just slipped through the cracks. My issue was being forced to allow a third party into my banks accounts. Not playing for time, i offered what i could and was refused. 

Farway

MalMonroe said:

KxMx said:

We don't pay a fixed DD to energy supplier, this is usually set by them to extract the most money they can get out of you. 

Some are fine with this as it allows credit to be built for the winter, I see their point but it's not for us. 

Instead we have quarterly bills and put money away each month in a dedicated account so when the bill comes the money to pay for exactly what we've used is there.

Direct debit arrangements also work the other way in that if you pay a supplier a fixed DD sum throughout the year and you are in debit for a few months during winter, they don't chase you for the money. If you are in credit (usually in the summer) you can ask them to repay that credit. So if you keep an eye on your consumption and your payments, as you do, then really paying a monthly DD is not detrimental at all. Plus most suppliers offer an annual discount incentive for dual fuel being paid for by DD.

No longer the case I'm afraid, these days separate suppliers are often cheaper.

Not sure but I think this came about by an ofgen or some such ruling as being unfair to all electric households where a cross subsidy just was not possible

BedrockFred

MalMonroe said:

BedrockFred said:

3littlegems said:

Hi
Wonder if anyone can help. So we currently pay £136.00 a month and they are wanting to up the payments to £195.00 which we cant afford. The hike up is due to us owing £500 that seems to have slowly built up over a year or so. So i used online chat today to say we couldnt afford it but i could offer an extra £10 a month and pay off extra when i could. They`ve refused and said the lowest they could offer was £170 and actually by the end of the chat that figure changed to £180!  I was advised to use a third party called Tully to assess our financial situation which i have refused. I am well aware of what we can afford but it seems Bulb have to verify my situation through a third party and only once they get a reply from Tully will they arrange a payment plan and thats only if Tully deem it fit that we have more important things to pay than bulb! 
I asked the agent to raise a complaint and that the conversation would follow on through email.
Can i be forced to use this third party?
I've received an email and she's still telling me i need to use Tully and then drops into the conversation that i have to give access to my bank accounts to Tully!!! Can this be right??  She`s also advising to use their other recommended advisors Citizens Advice. I dont need financial advise i run a good home budget but i cant magic money from what i dont have. Husband was out of work for 5 months last year we had to have a 6 month payment breaks on our big loan and lease car, we managed to keep up with everything else and we are still doing that now but we cant afford this increased payment.
Do i really have to let this third party get involved?  What happened to the days where you could ring a company, ask for help, sort out a payment plan etc Why do i have to give access to bank accounts for this to happen. Do i have any other options or is it a case of sucking it up and allowing this Tully them access? 

sorry if you used it you have to pay for it
Putting it bluntly don't have what you can't afford, live within your means in other words 
6 month payment break will also have to be paid for along the line

How on earth is that helpful to anyone? 

and what help is your comment...

pearl123

If you are all young enough, turn down the central heating. Throw on hats and extra jumpers. 
Contact the CAB, as suggested and see links below. 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/873960/Supplier_Agreement_19.3.2020.pdf
"We will support customers who are impacted financially as a direct or indirect result of COVID-19. Based on individual circumstances, this could include: • Considering reassessing, reducing or pausing debt repayment and bill payments for domestic customers in financial distress." 

[Deleted User]

3littlegems said:

[Deleted User] said:

With the greatest respect, suggestions of new suppliers and tariffs is avoiding the ‘elephant in the room’. The OP may not like the thought of third-party access to her Bank accounts; whether it is Tully or A N Other respected interlocutor, she has to accept that there is a debt problem that needs to be addressed. I worry when I read comments like ‘ I don’t see where I can cut usage’. The simple fact is that a debt has accrued because of under payment. Any increase in payments to Bulb has to cover both under the payments going forward and remediation of the existing debt. If a supplier believes that the customer is just playing for time, they will limit their financial risk going forward by putting in a prepayment meter.

No elephant in the room here! The debt is minor,  what with our hetic lives a pandemic and stuff going on it was something that just slipped through the cracks. My issue was being forced to allow a third party into my banks accounts. Not playing for time, i offered what i could and was refused. 

There is no blame attached here. If the debt is minor, then why is this thread running to 4 pages? Energy suppliers are not charities and whilst Ofgem requires them to be sympathetic in these difficult times, there is a large gap between the £145 per month that you offered to pay, and the £180 that Bulb is now seeking. Is the £10 extra actually enough to stop the debt increasing? It is worth bearing in mind that energy suppliers were already struggling before the start of the Pandemic. In 2019, Bulb recorded a loss of £129M; up a £121M from the previous year.

I am sure that Bulb would be delighted if you paid off the debt by credit card and moved on. However, you run the risk of paying more through high interest payments. This, in my experience, rarely plays out well. If you are not happy with third-parties looking at your bank accounts then find a trusted friend. They may be able to find short-term savings that you have failed to see. 

niktheguru

3littlegems said:

No elephant in the room here! The debt is minor,  what with our hetic lives a pandemic and stuff going on it was something that just slipped through the cracks. My issue was being forced to allow a third party into my banks accounts. Not playing for time, i offered what i could and was refused. 

I think you are missing the point here. No debt is minor. We congratulate you on being honest and forthcoming but you need to understand your suggestion of paying "£10" extra is not going to touch your debt.
You say you are paying £136 a month currently. You have accrued a debt of £500 in a year. This equates that you have UNDERPAID £41.60 a month for 12 months. So your current usage is approx £177 a month (136+41), so if you paid that amount and continued at your current usage over the next year your debt would STAY at £500 as you are only paying for the electricity/gas you're using. (if you stay at your current direct debit amount, your debt will increase to £1000 in 12 months) To pay the £500 debt over 12 months you need to pay ANOTHER £41.60 on top, so £218 a month, and you'll clear the debit and break even in a year. So I would say that the offer of £180 from bulb is VERY REASONABLE.
The fact that you are unable to afford it at this current time is unfortunate but not bulbs responsibility.

Of course you are well within your rights not to want to give a 3rd party access to your accounts, personally i wouldn't want to either, but then you need to come up with an alternative to pay what you owe.
Speaking to citizens advice bureau and other support groups as has been previously discussed would be a good thing to do. Ensure you have the maximum credits or incentives available to you from the government.
Getting a 0% credit card and then paying that off slowly whilst still 0% would be a good idea (even if it doesnt "sit right" with your husband) as at least then you wont be paying extra. You could do the £10 a month, and then add more when ever you can.
Definitely don't go down the dark hole of payday loans!!
Definitely don't keep the debt for a prolonged period to risk you going to a prepayment meter, that would be misery.

You HAVE to change your consumption. Saying "theres no way" is not an option. Set the heating a couple of degrees lower, don't always have it on, reduce electric showers if you have them, reduce time for kids having showers (say 5 mins rather than 10 mins), change halogen lights in house to LEDs etc etc just until your income increases. No one is expecting you to inconvenience your family and make massive sacrifices, but there are always improvements that can be made.
If you pay your debt immediately, then do a switch to the cheapest provider, that can make a considerable saving. Most importantly TAKE AND SUBMIT REGULAR METER READINGS. CHECK YOUR BILLS and keep on top of your payments. Dont just leave it to the supplier.

Good luck.

BedrockFred

""I am sure that Bulb would be delighted if you paid off the debt by credit card and moved on. However, you run the risk of paying more through high interest payments""
There are plenty of interest free credit cards around but I agree moving the debt around will not help unless the OP realises that they must cut down somewhere be it lowering the thermostat , keeping warm by other means ie extra jumpers etc or even considering getting rid of some of the debt like the car on contract hire, although she says the car etc isn't a problem of course it is it's all debt building up the payment holidays will have to be paid for somewhere along the line 
Moving the debt will not cause it to go away and moving supplier by paying off on a interest free credit card will be another bill to budget for
Suggested by me and many more speak to CAB they will not judge and they are very good

niktheguru

BedrockFred said:

""I am sure that Bulb would be delighted if you paid off the debt by credit card and moved on. However, you run the risk of paying more through high interest payments""
There are plenty of interest free credit cards around but I agree moving the debt around will not help unless the OP realises that they must cut down somewhere be it lowering the thermostat , keeping warm by other means ie extra jumpers etc or even considering getting rid of some of the debt like the car on contract hire, although she says the car etc isn't a problem of course it is it's all debt building up the payment holidays will have to be paid for somewhere along the line 
Moving the debt will not cause it to go away and moving supplier by paying off on a interest free credit card will be another bill to budget for
Suggested by me and many more speak to CAB they will not judge and they are very good

Agree with this, but paying the debt off now via a 0% credit card will allow her to switch suppliers quicker and get a quick cost saving moving forward, whilst obviously not changing/affecting her debt responsibilities.

BedrockFred

niktheguru said:

BedrockFred said:

""I am sure that Bulb would be delighted if you paid off the debt by credit card and moved on. However, you run the risk of paying more through high interest payments""
There are plenty of interest free credit cards around but I agree moving the debt around will not help unless the OP realises that they must cut down somewhere be it lowering the thermostat , keeping warm by other means ie extra jumpers etc or even considering getting rid of some of the debt like the car on contract hire, although she says the car etc isn't a problem of course it is it's all debt building up the payment holidays will have to be paid for somewhere along the line 
Moving the debt will not cause it to go away and moving supplier by paying off on a interest free credit card will be another bill to budget for
Suggested by me and many more speak to CAB they will not judge and they are very good

Agree with this, but paying the debt off now via a 0% credit card will allow her to switch suppliers quicker and get a quick cost saving moving forward, whilst obviously not changing/affecting her debt responsibilities.

Yes agree re 0% card that is the reason I suggested this, but she needs to be sure they can pay of the debt within the interest free period and as they are struggling with debt now would they be able
I really hope they will talk to CAB and get the professional help they need   

3littlegems

BedrockFred said:

""I am sure that Bulb would be delighted if you paid off the debt by credit card and moved on. However, you run the risk of paying more through high interest payments""
There are plenty of interest free credit cards around but I agree moving the debt around will not help unless the OP realises that they must cut down somewhere be it lowering the thermostat , keeping warm by other means ie extra jumpers etc or even considering getting rid of some of the debt like the car on contract hire, although she says the car etc isn't a problem of course it is it's all debt building up the payment holidays will have to be paid for somewhere along the line 
Moving the debt will not cause it to go away and moving supplier by paying off on a interest free credit card will be another bill to budget for
Suggested by me and many more speak to CAB they will not judge and they are very good

Why are you so concerned about my debt? Do you think we are the only people that took payment holidays last year??? No, is it a problem with the companies involved..No so therefore it isnt your problem either. The car can not be got rid of until the contract ends
I have no need to talk to Tully or CAB
The outstanding balance will be paid today and yes i will be moving on.
Have a look at my original post, it wasnt about the debt it was about whether or not i could be forced into allowing a third party nose through my accounts!!!!
Im not bloody stupid, of course i need to cut our consumption down, but its very difficult with 8 people in a house which isnt energy efficient due to outdated windows and low cavity wall installation.