British Gas lump sum payment after closing account

aeruk

I'm a student awaiting graduation and just closed my British Gas account as I've moved back home with my parents. I've been told that I have to pay the outstanding balance on my account (£577) in full and can't continue my direct debit as I had before. Another option is a repayment plan, but they've said that will look bad to credit lenders. I don't want a mark on my credit score before I've even really started. I have just enough in my bank account to pay the lump sum, but then I won't have enough for other monthly payments (phone, car insurance, etc).

What are my options here? Thank you for any help

la531983

Lend the money from someone else. 

Other than that, you are out of options.  They are correct in saying you need to settle the account, you are no longer a customer of theirs.

BarelySentientAI

Unfortunately, they're right.  You do need to pay the whole balance when you close the account.

Credit card?  Money from someone else?  I'm not sure how bad a repayment plan that you're making the payments on would look in reality though.

MeteredOut

Bank of mum and dad. In retrospect, it might be a good experience for you and you'll keep track of energy usage when you do get your own place.

Scot_39

Assuming you have checked the series of bills whilst you were liable (as tennancy terms in your name etc )

includes correct initial start readings
Final readings match those you submitted
and
includes any past payments as credits

then the bill is due.


Given the amount though that debt would perhaps have been accumulating for quite a while in a small student let for a single person (you make no reference to that being a share with flatmates / housemates).


So what was your billing period (1m, 3m, 6m ?) and when was the last previous bill with an actual not estimated reading ?

What have the debit / credit balances been on recent statements / bills ?

Basically how long should you have been aware of accumulating debt.

As you no longer have a supply / live account with them suspect they will be demanding final payment in full.

If the only option is pay or debt agreement with credit marker - I tend to agree you do want to pay in your situation if atcall possible.

Even if that means a few sacrifices (one obvious expensive one springs to mind)

If you cannot borrow from others - parents siblings etc ?

Are you working or have a job offer ?

Can you realistically pay the amount off in a short period - few months not a year etc , starting with a significant fraction upfront now ? 

If so did you offer to ?

Could you carry the rest on an overdraft on your bank account (arranged) or lift cash from say credit card etc paying fees / interest charges etc ? 

It's really not a good way to live - both are very expensive forms of debt - and fees / charges / interest can snowball quickly - so strictly only viable for small amounts - and only advisable if very short term - few months max.   And be very realistic when you estimate the period and the costs / fees of doing so.

If working or about to would your bank give you a small loan at lower costs 



Sell the car assuming its yours - as realistically without a high income your unlikely to be able to afford to run it (insurance, petrol, servicing etc) - especially if have to move out of parents when start work ?

Are you working yet ?
Do you have a post grad autumn start offer - and even if have who will pay for running that car for those months ?

How much is your monthly insurance compared to that gas bill ?

Could you afford VED (road tax ) a new tyre if got a puncture, exhaust if springs a hole or any other unplanned repair or even to service / MOT it annually etc ?

Has the debt gotten as far as a debt agency - because if it does and not paid plus their added fees / costs - could maybe  lead to bailiffs.




Not to sound harsh, but you dont exactly sound like living on the bread line if running a car. 

And chalk it up as a valuable life lesson for future life.

To prioritise the essentials not the luxuries in life - many in full time employment struggle to afford rent and even basics like food and utility bills these days - a car and the often £1000s pa for young driver insurance -  a distant dream.

So learn to realistically budget based on your own income - to differentiate between wants and needs - essentials and non essentials etc.

And learn to monitor, budget for and pay your essential bills on time.