Energy debt increases

Figures released last Thursday from Ofgem show a sharp increase in the level of customers in energy debt in the third quarter of 2009, compared to the second quarter:

• 13% increase in the number of electricity customers entering into new debt repayment arrangements
• 21% increase in the number of gas customers entering into new debt repayment arrangements

Energy bills are still higher for most people than they were at the beginning of 2008 even after suppliers cut their prices last year. The bitter winter weather is only likley to worsen this situation as we all have to use more energy to stay warm.  The numbers of people having to enter into a debt arrangement with thier supplier is likely to increase.

Piggy’s  steps to avoid energy debt

• If you pay by cheque move to Direct Debit and spread the cost of energy across the year
• Consider an online tariff
• Switch to a cheaper deal and if you have gas and electric with different suppliers then move them to a single supplier – most companies have discounts or special deals that apply.
• Reduce your energy usage
• If you are on a card or key meter consider having it changed to a credit meter – sounds crazy when we are talking about avoiding debt but the price you are paying for your energy will be significantly more if you are on this type of meter.
  

As soon as the warranty runs out, the problems start…

As always seems to be the case with anything around the home, whether it’s the TV, the washing machine or the dishwasher, everything seems to be working perfectly until you’re no longer covered.

When things do start to go wrong what choices do you have? Well, firstly there’s buying a replacement but this is often an expensive option, especially if the appliance is only a couple of years old. Plus, this is unlikely to be many peoples first choice given the current economic downturn and the global concern with decreasing your carbon footprints.

(Piggy says “Unfortunately going back to the retailer to arrange a repair may save your carbon footprint but in most cases is not a cost effective option.  The majority of manufacturers still routinely charge hefty call-out fees with additional charges for parts on top.”)

Thankfully there is another, more frugal, option available. One way of saving money when it comes to home repairs is to opt for a fixed price repair. The recently launched home repair service from http://www.repaircare.co.uk offers repairs on most domestic appliances including washing machines, fridges, freezers and extractor fans for a fixed fee. Prices range from £70 to £150, depending on the appliance type and brand, and include call out, evaluation, labour, parts if required and a professional safety check.

Fixed priced services enable the lifespan of domestic appliances to be expanded beyond the warranty period and are a great way to save money and take the hassle out of appliance faults. Repaircare offers an easy to use service with simple online booking available 24 hours a day, 7 days a week. Learn more at http://www.repaircare co.uk

Merry Christmas One and All!

Piggy’s little offering to the Season.  Enjoy and have a good one.  Click below to view.

nspxmaspoem2009

How free internet networking can boost your business profits.

My friend Liz at the Best of Milton Keynes just mailed me info on this free webinar about using free social networking sites to boost your business profits.  I will certainly be attending and I thought that Piggybank readers might also find it of interest.  See details below. How to make Facebook and Twitter work for your business and boost your profits https://www1.gotomeeting.com/register/885752480 Founder and CEO of thebestof, Nigel Botterill will be hosting a webinar with Mari Smith, the President of the International Social Media Association. Mari, who was born in Scotland but now lives in San Diego, has been dubbed “the Pied Piper of the Online World” by FastCompany.com and is known worldwide as ‘the Queen of Facebook’. She is one of the world’s top Social Media Keynote Speakers and Trainers. This webinar is completely FREE and it’s for you whether you already use Facebook or Twitter to market your business and especially if you don’t! The great thing is that you can partake from the comfort of your office and desktop! It’s all happening on: Monday 14th December – 6.00pm (for 60 minutes)

10 Steps to Success.

Last night I was fortunate enough to attend a meeting of the MK Cashflow Club where Lindsay Hopkins was speaking.  He gave an excellent talk on the work and life habits which he has used to help build his 5 (!!) businesses and extensive property portfolio successfully.

There is an outline of his talk on the Club blog at

http://101club.wordpress.com/2009/11/18/lindsays-stairway-to-success/

 

Beat the Credit Crunch with Repaircare

Repaircare’s new service helps people save money during the current economic downturn. The ‘home repair service’ provides you with the opportunity to get domestic appliances repaired for a fixed fee, starting at just £70. It has been specifically developed to make getting a broken appliance repaired as simple as possible.

The service combines the convenience of being able to select a call out date and book the repair online 24/7 with fixed pricing that includes call out, evaluation, repair, safety check and parts, if required, up to the value of the price paid for the repair.

The new service aims to meet Britain’s increasing demand for household repairs and uses a network of 500 independent local service engineers to deliver the service throughout every city & town in England, Scotland and Wales covering most household brands.

Piggy says “Repairing old appliances is not only a fantastic way to save money it’s good for the environment too!  Compared to the average cost of a new cooker at £400 for instance this service represents excellent value for money.”

For more information and to book a repair visit the site below:

repaircare

The increasing cost of rent arrears.

Tenant eviction has always been the last port of call for landlords, not least because the process is extremely time consuming and costly.  However the situation is set to get worse as a steep rise in the number of current tenant evictions is causing a backlog at the courts, meaning it can take over two months just to get a hearing date.

Owing to the recession and increasing levels of redundancy and unemployment, many tenants are unable to pay their rent, leaving some landlords unable to pay their mortgage.  This leaves them with no choice but to commence eviction proceedings or face repossession.

Landlords financial problems don’t get a whole lot of media sympathy but the truth is that if the landlord goes bankrupt then all his properties may be repossessed which affects the good tenants as well as the bad.  Around 35,000 landlords were behind with mortgage payments in the first quarter of this year and at the moment tenants of repossessed landlords can be given as little as two weeks to get out.

Unfortunately with unemployment expected  predicted to hit three million next year, rental arrears are expected to go up too which means that the situation is unlikely to improve.

(Piggy says “From the tenants point of view there is a small ray of light at the end of this particular tunnel as the Government has recently announced that they will be changing the law so that tenants in danger of losing their homes when their landlords are repossessed will be given two months’ notice to quit.)

David Beckham can’t sell houses!

Can celebrity connections help sell a home in today’s troubled property market? Apparently not if you are  David Beckham .

In November last year a three bedroom Victorian terrace on Norman Road in Leytonstone, east London that used to be his childhood home was put on the market by a very optimistic local agent, who hoped to trade on the Beckham connection, for £850,000.  At least three times its likely value at the time.

At first the property’s owners, Samira and Sulman Ali, had no idea of its once famous inhabitant until local man Colin Evans, who was looking into the past lives of some of the area’s more famous residents, knocked on their door.

But their hopes of cashing in on the Beckham brand may have cost the Alis dear. For nearly six months the house remained unsold and was eventually put up for auction by Savills on May 11.  Unfortunately the lot failed to sell and as of today is vacant and still being advertised on the Savills site for just £220,000; £30,000 less than neighbouring houses were being sold for last year.

Could a Smart Meter save you money?

The Government vowed last week to introduce Smart Meters to every home in the UK by 2020.  These meters are aimed at allowing both suppliers and customers to monitor gas and electricity usage more accurately.  The Energy Saving Trust believes that by allowing the consumer to take better control of their energy usage they could end up saving 10% on their energy bills each year.

So what exactly is a smart meter?

The smart meter is a replacement for your current energy meter. After the initial installation, your energy supplier maintains a constant link to your smart meter, allowing them to monitor your gas and electricity usage very accurately.

The Apprentice – why Mona deserved to get fired.

I have to confess that I don’t usually watch the TV series “The Apprentice”.  I find Alan Sugar patronising and the apprentices almost universally, irritatingly immature. (Which maybe gives Sir Sugar a good excuse for his manner )

However, last night I watched with interest as the two teams were given the task of rebranding the seaside town of Margate.  I grew up there and have recently begun to invest in the area so I am familiar with the town.  What suprised me most was how little research either team did into the tremendous changes that have been happening in Margate and neither bothered to find out what the future plans are.

Both teams very quickly decided on a marketing strategy that they thought would work based entirely on their preconceptions and then looked for evidence to support this.  Even local girl Mona failed to step in with any real insights.  The result of this was that neither team came up with a truly creative or interesting campaign and even the winning team were criticised by Margate councillors for “missing a trick”.

Mona’s team lost because she didn’t use her local knowledge and contacts effectively to help the team build a relevant and effective campaign.  And that’s why she deserved to get fired!

Piggy says “What this  really shows is just how important it is to thoroughly research an area before deciding on a strategy that will work.  Making contacts and asking relevant questions are key.  This is as true for a property investor or new business start up as it is for a marketing/branding campaign.”