Not paying energy bills is ‘curtains for your credit score’

FINANCE EXPERT WARNS AGAINST JOINING PROTEST THAT IS URGING PEOPLE TO CANCEL DIRECT DEBITS

A NOTTINGHAM financial company has warned people over a campaign urging people to stop paying their utility bills.

Don’t Pay UK wants to get one million people to pledge to cancel direct debits in an effort to force firms to reduce energy prices.

This is in the wake of the cost of living crisis, with energy prices expected to remain at more than two-and-a-half times their pre-crisis levels until at least 2024.

If government and energy companies have not reduced bills by October 1, group members say they will take action by cancelling their direct debits.

They hope that by everybody doing this on the same day they will be able to send a strong message to energy companies.

However, as Don’t Pay gains momentum, Imran Hussain, director at Nottingham-based Harmony Financial Services, has warned people of the consequences of not paying their energy bills.

Mr Hussain said: “Anyone considering not paying their utility bills and who thinks they’ll be able to purchase a home within the next few years may as well forget about it, especially if they have a small deposit.

“Not paying your energy bills will be curtains for your credit score.

“As the economic climate deteriorates, any blips on credit files will impact who will actually lend to you,

I will be cancelling subscription services I no longer use, but ensuring I keep my mortgage, utility and protection policies in place. Imran Hussain

and it’s also a slippery slope as all it takes is a few missed payments to end up with a default or CCJ. Then getting a mortgage will be a real struggle.

“I have spoken to many clients who, like myself, are concerned about rising energy prices and other utilities, and I say have a proper review of your outgoings.

“Personally, me having coffee at home each morning saves me over £100 a month, and I will also be cancelling subscription services I no longer use, e.g. Netflix, but ensuring I keep my mortgage, utility and protection policies in place.”

Don’t Pay UK has said that the only way of getting their message across is by turning out in serious numbers to show energy companies that they have some power.

A statement reads: “One million sounds like a lot, but millions more will already be thinking about whether they’ll be able to pay come winter and afford the other things they need to survive for them and their families.

“Even more of us will be angry about paying more than double what we used to pay for the same amount we use. Let alone food, petrol and mortages.”