Make homes energy efficient to avoid debt

A financial solutions company has suggested that Brits should try to make their homes energy efficient to avoid piling up debt. Think Money said that UK householders are potentially losing money because their homes are not energy-efficient.

company said that households should consider ways of making their homes more efficient to save money and reduce their risk of debt in the difficult economic climate. However, those who are already struggling with their debts should immediately seek financial advice as improving the efficiency of their homes will not solve their debt woes.

The company made the suggestion after a study by Halifax has found that the “vast majority” of homes in England and Wales have an energy efficiency rating of “average” or “below average,” and could be spending unnecessary amounts of money as a result. Fewer than a quarter of homes were rated “above average,” Halifax said

In a statement, Think Money said that the current economic climate has made energy efficiency more attractive and not just an environmental issue.

“There is a lot to be said for the environmental side of making homes more energy-efficient, but many people don’t realise that there’s also a financial incentive. The Energy Advice Trust estimates that the average home could save £270 a year by installing roof and wall insulation, and there are a number of other things people can do to use less energy,” the statement said.

The case for making homes more energy-efficient is all the more important given the energy price rises seen in the last two years. Many customers found themselves in debt on their accounts because their direct debit payments had not been changed accordingly, and many more struggled to keep up with significantly higher prices.

Energy prices rose by more than 60% for both gas and electricity in 2008, and although there have seen some cuts in 2009, prices are still significantly higher than they were in 2007 and early 2008. This has put a lot of pressure on people’s finances, especially those struggling with existing debts.

“Things like having insulation installed, keeping curtains closed after dusk and keeping doors closed can help to reduce the amount of energy used, and therefore can reduce some of the pressure on the billpayer’s finances,” the statement added.