Not everyone has a buffer, right? What happens if you can't pay energy bill?

[thatchersmotorbike]

As someone who has always lived paycheque to paycheque, and even now we have the tiniest buffer at the end of every month. Bills paid, food budget, invoices paid etc. We're left with a small amount and on the last day before payday we do have literally nothing in the bank.

We can't be the only ones left with nothing at the end of the month can we?

And even if you have an extra £300 a month what happens when that gets requested in your energy DD? Am I living in a fantasy world or are there going to be people absolutely fucked by this?

Can I ask for a vote?

AIBU - we have enough savings to see us through a few years of crazy energy price hikes
AINBU - we are left with nothing at the end of the month, or very little, and the price hikes will cripple us if it goes on.

If you have a mortgage but get into thousands of energy debt what do you do?
If private rending what do you do?
If you own outright what?

Is anyone planning to let the debt rack up?

Well exactly. The energy companies don't have to cut anybody off anymore, they just put it into the customers own hands.

We earn the maximum we can right now given our situation with childcare.

I'm also not going to break my back to pay a multinational who have been paid over and above what they're owed.

I'm more worried about other people. I've been in debt with my provider over five years and I know how to keep them at bay. Others don't.

I'll switch the heating off. When I moved into my house, I had no central heating for 7 years because I couldn't afford to have it fitted. I used a gas fire in one room. Now I have electric blankets on the settees that cost pennies to run. We sit on those with a blanket while watching telly. I don't know how anyone would manage in winter without lights on, though. That's a lot of hours in the dark.

So what happens to all the people who can't have any energy? Don't you worry it will be utter chaos?

Of course I do. A lot of people will suffer.

But that's why I'd urge people to prioritise housing costs and energy costs over any consumer debts.

They don't if you pay your bill but not the debt. They aren't doing that to me, it's been five years.

He had five accounts all taking direct debits. They couldn't explain why. He canceled the DDs and contacted the ombudsman who work within the energy company. He never got it back. He got one account and pays that but the others never got sorted.

We had an £800 a month buffer, were starting to get savings behind us. Now our mortgage is going up by over £800 a month and our savings will get eaten up pretty quickly.

We will manage, because we have lived in poverty before so have some "experience" in that area.

I will prioritise what we pay

1)Mortgage
2)Council tax
3)Fuel (we need the car to get kids to school as council have placed them in 3 different schools across 2 different towns and there is no bus service to any of them)
4)Food
5)Utilities
6)Everything else

I'm an expert at robbing Peter to pay Paul sadly, and even with no debt currently I can see us having to do this.

We’re somewhere in the middle. Yes, we have plenty of headroom now (even with buying a flat), but in a few years when we have kids and have to pay childcare bills I don’t expect us to be able to just absorb crazy price hikes.

@MooseAndSquirrelLoveFlannel that seems like an absolutely crazy increase! It just feels so weird that your very home security can be increased like that.

Why didn't your dad stop payments straightaway ?
Surely he must check his bank account monthly ( daily in my case ) I would of cancelled the other DD straight away not let it run into thousands .

If you have been in debt for 5 years then you can't blame the cost of living crisis.

It sounds like you have always had the attitude that you don't see why you should have to pay for the energy you use. Leaving other customers to pay more to cover this.

Honestly cant get over the fact that you seem to think it's an achievement to have gotten away with being in debt for 5 years.

You are also mistaken if you think you will just keep getting away with not paying. They will force fit a prepayment meter and your credit rating will already be destroyed.

Re your dad's issues (which btw should have absolutely NO bearing on whether you pay your bills or not, wtf?), he needs to raise another complaint and get to the bottom of it. After 8 weeks he can go back to the ombudsman who btw are independent and they will sort the issue if there is one.

OP if such a big chunk of your income is going on consumer debt wouldn't you be better on a DMP and then prioritising housing, energy and food costs?

It sounds like your finances haven't added up for a long time.

Have you talked to Stepchange or CAP?

Because, like many on direct debits, many who probably still don't realise they're being overcharged, he did not notice until years in.

I know a few people who never check their accounts. I think the more wealthy you are the less you check too. I check mine daily because I operate on a small budget. Husband checks his daily as the family income is in there and he's very savvy.

But no, many many people never check or check very rarely.

And even if you have an extra £300 a month what happens when that gets requested in your energy DD?

It doesn’t get requested as a DD unless you are using that level of energy.

Well, my credit rating is improving as I pay commercial debt and priority debt is not on the credit file.

I am in contact with my provider and no, they are not going to fit a meter. No, I don't have any moral obligation to them and their massive profits, especially given the fact they take more than they are owed on a regular basis and are always in credit, not deficit, as a company missing out on money owed would be.

Our food budget is incredibly small and we eat very well as I cook daily. £200 for three people and two cats.

We don't have a buffer and we have no savings. My husband is disabled and has been waiting nearly a year for an operation. He is making himself ill by not having the heating on. I've no idea what we will do to be honest. We will probably be forced onto prepayment meters.

This year we will be fine but I’m dreading next year when our mortgage fix ends,the price cap ends with the additional £400,my house is already starting to smell damp so we can’t not have the heating on for months on end.

If you think energy companies don't report debt to credit reference agencies then you are deluded.

I try not to think about it. Doing best to be energy efficient.
But likely the debt will accrue and if a prepayment meter is threatened I will use a credit card (I have one with a high limit from when I worked- I’ve just refused to update my income info everytime they ask.)

I don't have any debt so it's not such an issue, we simply pay each month and go without other things if needed. Last month I didn't eat out at all, no wine for home either, I scratch cook with lots of cheap vegetables and pulses. Still not got heating on as it's warm (21 in my living room right now).

If anyone is reading this my advice is not buy on hp or other credit, end of - the root of too many people's problems is buying items in finance that they didn't 100% need (eg new sofa or tv) or consistently over spending every month a little bit.

We have prepayment meters so, if we can't afford to top up we will be sat in darkness very cold 😪

So your dad never noticed 5 DD going out for years , more fool him .
You seem to of been in dept for 5 years so nothing to do with the current situation.
If we all had no moral obligation to pay our energy bills what happens when the the energy companies run out of money and go bump ( like many have )