Energy Prices (Strictly NO referrals!)

413x · 28 Jun 2022 at 08:22

chrcoluk said:
You are assuming of course they not spending it all on living costs, and even if they not I think there is nothing wrong with spending providing you dont default and have other people cover your losses.

I can flip this round though, I have known people who put a chunk of their income in savings, and then plead poverty pretending the bit they not put in savings is their entire income. When asked why dont they use their savings to pay their bills its along the lines of "I cant touch that". One example is someone who had 14k in a bank account but decided to not pay a 6k credit card bill.

I also know people like this...

"don't you have any savings? You have a decent salary?"

"yeah but that doesn't count I can't touch that"

bigmike20vt · 28 Jun 2022 at 09:20

413x said:
I also know people like this...

"don't you have any savings? You have a decent salary?"

"yeah but that doesn't count I can't touch that"

I am a little like it myself to be honest, and a small amount of that is no bad thing (not ignoring bills or crying poverty but ignoring a chunk of money and living in such a way is it was not there)..

Each month i put aside a set amount directly into savings, and another amount into my lads bank account for when he (hopefully) goes to uni or college or what ever - he is only 6 right now but higher education costs are insane now, nothing like when i went.

I never see this money and as such if i have friends who invite me to go to some extravagant doo i may cry off from doing it.

I draw the line at not paying my bills or my way however for it........... I just go without myself. Fortunately I am lucky and dont worry about cash too much, but that could all change when my contract ends next jan.

Hagar · 28 Jun 2022 at 09:34

I spent my adult life not buying stuff on credit except for a mortgage. We have always done without until we can afford stuff. Telephone, television etc., furniture we bought second hand to start with. I had a credit card in 1983 but that was the last one. Everything was cash from the bank.

Sinbad2000 · 28 Jun 2022 at 09:42

Just checked my British Gas account. It's amassed £300 credit in 4 months...
Direct debit dropped by 25% and I'll take that £300 back, thank you very much

bigmike20vt · 28 Jun 2022 at 09:46

Hagar said:
I spent my adult life not buying stuff on credit except for a mortgage. We have always done without until we can afford stuff. Telephone, television etc., furniture we bought second hand to start with. I had a credit card in 1983 but that was the last one. Everything was cash from the bank.

i used to be like that but you lose out on a lot of stuff......... now i buy everything i can on either credit card or cashback debit card............. but i always pay it off monthly with no interest payments.

that way i still get things like free purchase protection insurance or 2% cashback (was 3 but my card rewards were gimped a few months back) but at the same time i am not in debt or paying interest off.

200sols · 28 Jun 2022 at 09:50

bigmike20vt said:
Each month i put aside a set amount directly into savings, and another amount into my lads bank account for when he (hopefully) goes to uni or college or what ever - he is only 6 right now but higher education costs are insane now, nothing like when i went.

Seriously consider investing that money for your kid, in 14 years time for whatever the cash value will be massively eroded by inflation even it drops back towards 2%. Over the long term its a far better option.

bigmike20vt · 28 Jun 2022 at 10:05

200sols said:
Seriously consider investing that money for your kid, in 14 years time for whatever the cash value will be massively eroded by inflation even it drops back towards 2%. Over the long term its a far better option.

i thought about it but i have some money tied up in investments as well......... and over the last 3 years they have been battered!. I have filled his isa and the interest rates on a young persons savings account are better than adult ones at least.

Doobedoo · 28 Jun 2022 at 10:06

200sols said:
Seriously consider investing that money for your kid, in 14 years time for whatever the cash value will be massively eroded by inflation even it drops back towards 2%. Over the long term its a far better option.

Sound easy but where do you invest that isn’t risky?

theone8181 · 28 Jun 2022 at 10:22

bigmike20vt said:
i used to be like that but you lose out on a lot of stuff......... now i buy everything i can on either credit card or cashback debit card............. but i always pay it off monthly with no interest payments.

that way i still get things like free purchase protection insurance or 2% cashback (was 3 but my card rewards were gimped a few months back) but at the same time i am not in debt or paying interest off.

I agree, imo people are daft for not using a credit card. Ours is used for everything and paid off on time every month, but then we're not low earners (not top either, don't think I could stretch to a gucci belt

). I do wonder how even a pair of people on low incomes with kids will survive this winter.

200sols · 28 Jun 2022 at 10:26

bigmike20vt said:
i thought about it but i have some money tied up in investments as well......... and over the last 3 years they have been battered!. I have filled his isa and the interest rates on a young persons savings account are better than adult ones at least.

3 years is a tiny investment timeframe and includes the covid crash.. Your kid is 6, markets should outperform cash in the 10/15 years before he needs to access the cash. I'd just stick it on a market tracker like ftse all share or a global tracker.

Doobedoo said:
Sound easy but where do you invest that isn’t risky?

Firstly all investments carry risk but they offer the best chance of growing your money in real terms, his son is 6 and regular investing can set him up for life. Of course past performance is not indicative of the future but one thing is for certain, inflation will erode any cash savings you just cant see it. Money in the bank is effectively losing 10% of its value per year right now.

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kona786 · 28 Jun 2022 at 12:11

chrcoluk said:
You are assuming of course they not spending it all on living costs, and even if they not I think there is nothing wrong with spending providing you dont default and have other people cover your losses.

I can flip this round though, I have known people who put a chunk of their income in savings, and then plead poverty pretending the bit they not put in savings is their entire income. When asked why dont they use their savings to pay their bills its along the lines of "I cant touch that". One example is someone who had 14k in a bank account but decided to not pay a 6k credit card bill.

There are plums on every levels. For sure.

chrcoluk · 28 Jun 2022 at 15:08

bigmike20vt said:
I am a little like it myself to be honest, and a small amount of that is no bad thing (not ignoring bills or crying poverty but ignoring a chunk of money and living in such a way is it was not there)..

Each month i put aside a set amount directly into savings, and another amount into my lads bank account for when he (hopefully) goes to uni or college or what ever - he is only 6 right now but higher education costs are insane now, nothing like when i went.

I never see this money and as such if i have friends who invite me to go to some extravagant doo i may cry off from doing it.

I draw the line at not paying my bills or my way however for it........... I just go without myself. Fortunately I am lucky and dont worry about cash too much, but that could all change when my contract ends next jan.

Yeah I have no issue with what you doing, I dont want to label everyone who has savings with what I said, it was more of when they dont pay obligations.

potatolord · 28 Jun 2022 at 15:15

A mate of mine is a bit of a miser. He looks, and lives, as if he is on the poverty line. For example, he pretty much lives on porridge.

He saves all his money in a current account and still pays a mortgage he could have cleared a decade back.

I don't understand this at all.

200sols · 28 Jun 2022 at 16:02

potatolord said:
A mate of mine is a bit of a miser. He looks, and lives, as if he is on the poverty line. For example, he pretty much lives on porridge.

He saves all his money in a current account and still pays a mortgage he could have cleared a decade back.

I don't understand this at all.

Because it makes zero sense.

throwaway4372 · 28 Jun 2022 at 16:12

What's the latest on this? I've been on a fixed with BG since Nov 2021, which worked out nicely. So that's coming to an end in Nov, right after there's a hike in October. Is there any value in fixing ahead of October, or is that pointless now?

ci_newman · 28 Jun 2022 at 18:05

throwaway4372 said:
What's the latest on this? I've been on a fixed with BG since Nov 2021, which worked out nicely. So that's coming to an end in Nov, right after there's a hike in October. Is there any value in fixing ahead of October, or is that pointless now?

BG will charge you a fee for exiting your tariff early (probably £100/energy type), so in your case the only option is to sit it out on the SVR

Richie · 28 Jun 2022 at 18:28

potatolord said:
A mate of mine is a bit of a miser. He looks, and lives, as if he is on the poverty line. For example, he pretty much lives on porridge.

He saves all his money in a current account and still pays a mortgage he could have cleared a decade back.

I don't understand this at all.

Possibly a comfort blanket. He may have had a tough time financially at one point in his life so the access to a large sum of cash is reassuring to him.

He could pay his mortgage off however this would take a large chunk of this security blanket away which would cause him stress.

That one reason... Or he could just be a fool but, until you ask him, you'll never know for sure.

throwaway4372 · 28 Jun 2022 at 18:29

Yeah I'm like that too, coz I grew up super poor, and never want that again. It's part comfort blanket, and part thinking things aren't worth the price tag.

413x · 28 Jun 2022 at 20:23

ci_newman said:
BG will charge you a fee for exiting your tariff early (probably £100/energy type), so in your case the only option is to sit it out on the SVR

Not necessarily.
My fix is a zero exit fee fix. So he may be able to switch for no cost.

As to if its worth it? That's a different matter

Jokester · 28 Jun 2022 at 21:49

Been offered this as a fixed deal till end of July 2023, thinking of taking it, looking at the potential increases in gas prices to come over next winter. Especially if Russia does end up cutting off gas to Germany.

Gas: £1450.89

Standing charge:
24.206p per day

Unit rate:
11.241p per kWh

Electricity: £1239.69

Standing charge:
44.302p per day

Unit rate:
38.268p per kWh