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Sudden utility bill price hikes could lead to emergency cash flow problems
Millions of households throughout the UK could see their electricity and gas bills increase once more, putting additional strain on finances and leading to unexpected cash flow problems, a leading payday loans lender has warned.
Umbrella Loans, which specialises in responsible payday lending to help cover emergency cash flow problems occurring as the result of unexpected costs, has cited a number of reports in the press which suggest energy supplies are planning price rises in early 2013. With previous increases already stretching many individuals' and families' finances to the limit, any further increases could leave many needing to seriously rethink their monthly spending.
Umbrella Loans' spokesperson said: "The Daily Telegraph recently reported that the average annual energy bill for the UK could rise by £118 to a record £1,428. This follows news that many energy suppliers have abolished their cheapest fixed rate deals. If change occurs and we don't have time to plan for it, it can make it difficult to budget for the month.
"Further problems may arise if the UK is subjected to a particularly harsh winter and we need our heating on more often and for longer periods. This can be very difficult to plan for, as there can be no telling what the weather will do from one week to the next. The combination of price hikes and additional usage could lead to bills that are much higher than expected."
As a payday loans specialist, Umbrella Loans is used to working with clients who have been hit with unexpected bills and left with a cash flow crisis ahead of the next instalment of their salary arriving. It uses a thorough process to determine the suitability of the applicant for a payday loan, and uses its website to highlight the importance of not using this form of borrowing for long-term debt problems.
A recent report by Santander found that 28 per cent of people in Britain had been forced to borrow to cover the cost of their bills, including water, heating and council tax. While it's important to plan effectively for the months ahead, a payday loan could be an important step to getting back on track.
For more information about payday loans, visit http://www.umbrellaloans.co.uk/