Getting into deep water with debt

A growing number of households in the UK are seeking help after falling into arrears on their water bills.

Citizens Advice has said that the number of calls from people who’ve fallen behind on paying their water bills has risen to 87,000 – marking a 6 per cent increase – in the 12 months leading up to April 2011.

This worrying picture of growing numbers of people struggling to cover even basic living costs has been further emphasised by figures released by the Money Advice Trust (MAT), showing that its National Debtline advisers have already received calls from 10,000 people this year who can no longer afford their water bills.

The findings reveal just how squeezed many household budgets have become, with rising energy bills and inflation in general having a big impact on their money – with many being pushed into debt just to cover essential costs.

As a result, an increasing number of people are turning to Government help. It’s been reported that 61,232 households are now on the ‘WaterSure’ tariff – a scheme designed to cap the water bills of qualifying customers to the cost of an average household water bill. This figure marks a sharp rise on last year, when only 44,279 households were on the scheme.

Unlike gas or electricity, you won’t be able to switch to an alternative water provider, as different companies supply different parts of the UK. However, if you’re concerned about the cost of your water bills, there are several practical steps you could take to reduce your water usage – and save you money that’s literally going down the drain.

You could consider cutting your water bills by:

Having a water meter fitted. If there aren’t many people living in your house, it could reduce your water bills.

Paying your bill by Direct Debit – some companies offer a discount if you pay this way.

Have a water-saving shower head fitted: the long-term impact on your bills could outweigh the short-term spend.

Put a brick in your toilet’s cistern to reduce the amount of water that gets flushed away.

However, money-saving measures like these could only really help if you’re otherwise managing your finances reasonably well. If you’re having real trouble with your finances in general, you should speak to a debt adviser to find a way to get back on top of your money.

References and useful resources:

WaterSure – http://www.ofwat.gov.uk/consumerissues/assistance/watersure/

“How to stay out of energy bills debt” – http://www.thinkmoney.com/debt/how-to-stay-out-of-debt-energy-bills-step-by-step-0-3227.htm

Source: www.debtmanagementtoday.co.uk