Bulb and struggling to pay increased payments

3littlegems

BedrockFred said:

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   

I dont need professional help thanks. Not struggling with debt at all. Was struggling to find the extra required for bulb but nothing else.

3littlegems

niktheguru said:

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.

No point missed
No i havent been underpaying for over a year, dont you think bulb would have chased me a lot earlier if i had been? I have already increased payments twice since joining them.
Of course its not bulbs responsibility however some understanding wouldn't go a miss would it, must be millions of people in far worse positions than us and to be forced to have someone snoop through your bank accounts is an added stress no one should be out under.
Please do enlighten me on how to change our consumption. No electric shower, kids shower as quick as they can, the small ones share,we have some LED lights but not all. Heating currently isnt on, tends to be put on early morning and evening if cold. 
The debt will be paid today and then yes i shall be moving from bulb, even if its cheaper i will keep that saving to one side working towards having extra for next winter.
I always take meter readings each month and pass them on.

3littlegems

To come on here and be so harshly judged is just soul destroying. My week has already produced enough tears with trying to homes school a 7 year old whilst entertaining a 2 & 4 year old and encouraging the three teenagers to keep going. My husband is out the house 12 hours a day with pus nights away to.
I didnt ask for debt advice and nor do i need it but you all thought to give it anyway and mostly of you rudely to.
I run a bloody good  budget for my family but every.one makes a mistake now and again and bulb was mine and today it will be sorted and that will be the end of it.
Take a second and stop judging
#bekind    or has that been forgotten already?

niktheguru

3littlegems said:
No point missed

No i havent been underpaying for over a year, dont you think bulb would have chased me a lot earlier if i had been? I have already increased payments twice since joining them.
Of course its not bulbs responsibility however some understanding wouldn't go a miss would it, must be millions of people in far worse positions than us and to be forced to have someone snoop through your bank accounts is an added stress no one should be out under.
Please do enlighten me on how to change our consumption. No electric shower, kids shower as quick as they can, the small ones share,we have some LED lights but not all. Heating currently isnt on, tends to be put on early morning and evening if cold. 
The debt will be paid today and then yes i shall be moving from bulb, even if its cheaper i will keep that saving to one side working towards having extra for next winter.
I always take meter readings each month and pass them on.

Please don't take it the wrong way. I am not judging you or telling you what to do. Times are tough at the moment and I understand that.
I was merely trying to help by giving you options to your original query, and trying to make you understand that by paying £10 extra was just going to increase the debt owed to your energy supplier.
You HAVE been underpaying for the last year. That is NOT the same as not paying your direct debits. Despite increasing your payments to bulb twice, your usage has been in excess of the money you have been paying in. Of course you haven't done it intentionally, and its great you've been providing regular meter reads (as most people who come on here in trouble dont!!) But if you look at your monthly bills you will see that the debit on your account has been steadily increasing over the last 12 months (the sudden request for £500 doesn't come from no where!!) and of course this winter has been particularly cold so energy use is higher.
The third party thing looking at your finances is for people who truly cant afford it, and by showing they cant afford it then the company tells bulb they can only afford x amount. Its an independent way of assessing finance. Sure, its obtrusive but its just one way and its not compulsory. They suggested a payment plan for you, you said it was unreasonable for you as it was too much considering your other obligations so it doesn't seem unfair for a third party to assess it if there is no agreement? Anyways, you seem to have found the money so thats good, and you can start afresh.

In terms of keeping money aside, thats always good, but in your case its probably better to keep an eye on the monthly bills to see whether you are going into debit, and trying to either pay that extra owed or keep it aside so you can pay it when they ask for it, rather than it being a surprise after several months.

In terms of consumption, yes you are doing several things that help. Change all your halogens to leds, not some. (it really makes a difference.)
You said you have inefficient windows, have a look round all your windows and check the seals, are they all clean and in good condition, are they leaking cold air - if so it is relatively inexpensive to buy new seals (hardware store/amazon/ali express) to reduce the draught.

Best of luck.

molerat

3littlegems said:

molerat said:

There is no way that use is costing that much, that should only cost around £120 tops. Those figures are way out, MSE club only knows what figures you put in. You need to get a grip of your actual usage and ensure you are on the cheapest possible tariff with your current supplier as with that debt you will not be able to switch. Have you been giving the supplier regular reads, are the bills showing actual readings or estimates ?

Ok found it on the statement. Estimated annual Gas usage is 17372 and electric 5469 and It says that my personal projection cost for the year will be £977 electric and £586 gas.   I pass readings monthly and yes the bills show my readings not estimates. We are on the cheapest tariff with Bulb. Im not disputing the usage but how im required to have a third party nose through my accounts to justify what i can pay

Do you actually know what your consumption is ?  Those figures are really just a guess and give a figure of £130 a month, It is obvious that you are using way more than that. You really need to get a grip of your actual use - actual meter reads over the past 12 months will show you that - because if you give those figures to a new supplier you are likely to end up in the same situation in 12 months time.  You need to understand how much you are using and where you are using it, not just blindly entering readings into a website, and carefully read the monthly statement to understand the state of your account.

pearl123

It sounds like OP has found her solution. Paying by card. 
For those who find themselves in a similar situation, seeking third party help can take away a lot of stress and worry. 

[Deleted User]

pearl123 said:

It sounds like OP has found her solution. Paying by card. 
For those who find themselves in a similar situation, seeking third party help can take away a lot of stress and worry. 

I agree; problem resolution by Committee in a public forum is never the answer. Posters tend to use forums as a drunken man might use a lamppost: for support, not illumination. A third-party can often see a solution that is not immediately obvious to a person under stress. There is no shame in putting one’s pride to one side and seeking advice. That said,  I wish the OP and her family well in these difficult times.

tim_p

If you’ve not been underpaying then how do you think you’ve ended up owing them £500?

Gerry1

The OP has been paying her DD in full, so there's no wilful underpayment there.  However, the DD is only a contribution to a kitty that may or may not prove to be sufficient to pay the bills.  If the consumption turns out to be higher than the OP thought it would be when she signed up then she has been underpaying, albeit unwittingly.  That's why Bulb flagged it up and wanted to increase the DD twice: once to reflect the higher usage and then again to claw back the arrears.

As others have noted, the OP urgently needs to make absolutely sure that the figures given to the new supplier accurately reflects the actual usage, that steps are taken to use less, and that any non-essential expenditure may need to be trimmed if the energy bills still remain a problem.

I'll be bold enough to suggest two items for the chop.

1. Cancel any TV subscriptions.  Sorry, but they can't be justified if basic energy bills are a problem.  Saves at least £100 per year?
   
2. Better still, cancel the TV Licence, saving £157.50 per year.  Just make sure you only watch catch up TV: don't watch, download or record any programme as it's broadcast on TV, and don't watch anything via the BBC iPlayer.  That still leaves a vast amount of available choice !

btr30

Been reading the thread over the last couple of days and I am pleased that OP has come to a solution that prevents her going on prepayment meter.
As an aside my own consumption has gone up significantly during lockdown, with daughters returning from uni, working at home etc,we have moved from avg10 KWh per day to around 14 KWh per day. Gas has also risen due to being at home all day over the winter.
Point being, consumption profiles have changed, which may not reflect original consumption estimate and direct debit repayments.
To be fair to Bulb, I thought their repayment plan was a reasonable offer, and OP could have moved onto a cheaper tariff with them without having to immediately clear debt to move away.