Energy Prices (Strictly NO referrals!)

[413x]

I have a feeling klarna etc are taking on too much soon to be bad debt.

You can check someone's credit now. It's probably fine. But in this situation it's the future you should be looking to.

 

[413x]

Maybe, maybe not. Look at fuel prices, jumped from £1.40ish per litre to £2+ almost overnight. A bit of grumbling for a few weeks from the general public, prices drop back slightly to £1.80ish and folk are actually happy it's cheaper now, they've already acclimatised to the new prices and forgotten it was 50-60p a litre cheaper less than two months ago. I wouldn't be surprised if we see the same happen with utility prices.

Different ball park I think here.
Petrol hasn't trippled.
Also. If you don't work it isn't really an issue.

Everyone is hit by utility costs.

And its all at the same time.

 

[MooMoo444]

Buy some thick socks and jumpers and read books/play board games for entertainment. What a time to be alive.

 

[413x]

Buy some thick socks and jumpers and read books/play board games for entertainment. What a time to be alive.

Candles. Don't forget the candles.
And you have perfectly good wax in your ear. No need to buy!

 

[dave1983]

I have a feeling klarna etc are taking on too much soon to be bad debt.

You can check someone's credit now. It's probably fine. But in this situation it's the future you should be looking to.

I am seeing a lot of companies joining Klarna, Monzo now offer flexible credit the only slight difference it's restricted to online purchases so things like utility bills would be excluded. But imagine taking a loan to pay off an energy bill insane as it sounds people will do this as it probably works out cheaper depending on the apr rates. even credit card would be cheaper on the eye watering 39.9% apr.

 

[Ayahuasca]

Just LOL if you aren't klarna'd up to your eyeballs in Gucci belts.

 

[Zenduri]

Candles. Don't forget the candles.
And you have perfectly good wax in your ear. No need to buy!

 

[413x]

I am seeing a lot of companies joining Klarna, Monzo now offer flexible credit the only slight difference it's restricted to online purchases so things like utility bills would be excluded. But imagine taking a loan to pay off an energy bill insane as it sounds people will do this as it probably works out cheaper depending on the apr rates. even credit card would be cheaper on the eye watering 39.9% apr.

I expect many will use it to keep up with spending on stuff. Maybe to "save Christmas"?

But struggle to pay it back.
If those companies do not tighten lending they may struggle to get that money back.

 

[Curlyriff]

Fuel hasn't even dropped around me tbh. It is 189.9 for petrol and 199.9 for diesel! Meaning what it was at £1.36 (October/November 2021) it was costing me £300 a month in fuel is now costing me £440. That is just mental.

In terms of rates now for energy, the attached is Octopus current offer for 12 month fixed. Peoples thoughts?

 

[Haggisman]

I'm fortunate I don't appreciate coffee!
I think that cost above is as much as my whole jar of instant I have at home!

4 pounds for a coffee?
I've only been to a coffee shop twice. And it was a long time ago.

Yeah, that's insane, you can get a KG of freshly roasted single origin for ~£16 (e.g. 4 cups of Costa) which is infinitely nicer and gives you exponentially better value. It's not like Costa is even nice coffee - I bought a bag of their beans from the supermarket as my usual bean delivery was late and had 2 cups and chucked the rest away. Had to add sugar and milk to actually make it bearable!

If you left in the 1kg bag you'd only get about 2 weeks before they start to drop in quality (they are often roasted a year ago and vacuum sealed). You need a proper air-tight container which then gives you about 4-6 weeks use per 1kg bag. Until you open the individual 1kg vacuum bag they will list months.

Edit: Also don't generally pick mass produced beans, although cost goes up a few pence per mug it worth it. Waitrose and M&S do more specialist beans that have a roasting date meaning only likely two weeks or so old and so taste fresher still. Grind as you go, don't mass grind and leave in machine. Again that just ruins flavour.

Have to say I am tempted! Was going to buy a beer cooler machine. But I'm not excited by the keg selection. I don't want to fall into the slippery slope of coffee!

Check out Hormozi - have been using them for the last 6 months or so after finding them from this thread https://forums.overclockers.co.uk/threads/online-coffee-beans-retailer.18928444/

The oldest roast I've had was 5 days before delivery, and even the cheap options are a massive improvement on supermarket stuff while being only a fraction more expensive. (e.g. 1kg of Vietnam White Dragon beans is £14.85 compared to £13.75 for 1kg of Lavazza from Tesco)

 

[Zenduri]

I expect many will use it to keep up with spending on stuff. Maybe to "save Christmas"?

But struggle to pay it back.
If those companies do not tighten lending they may struggle to get that money back.

I think Klarna will end up going the way of Wonga, they laid off 10% of their staff earlier this year

 

[dave1983]

I expect many will use it to keep up with spending on stuff. Maybe to "save Christmas"?

But struggle to pay it back.
If those companies do not tighten lending they may struggle to get that money back.

i was listening to Martin Lewis and he mentioned the influx on the national helpline so these are debt management companies (charity free organisations). So these are probably people where they have to freeze all the credit cards and loans to pay off the energy bills.

 

[Haggisman]

I am seeing a lot of companies joining Klarna, Monzo now offer flexible credit the only slight difference it's restricted to online purchases so things like utility bills would be excluded. But imagine taking a loan to pay off an energy bill insane as it sounds people will do this as it probably works out cheaper depending on the apr rates. even credit card would be cheaper on the eye watering 39.9% apr.

I'm confused how it would be cheaper?

 

[adam cool dude]

Maybe, maybe not. Look at fuel prices, jumped from £1.40ish per litre to £2+ almost overnight. A bit of grumbling for a few weeks from the general public, prices drop back slightly to £1.80ish and folk are actually happy it's cheaper now, they've already acclimatised to the new prices and forgotten it was 50-60p a litre cheaper less than two months ago. I wouldn't be surprised if we see the same happen with utility prices.

Fuel prices are manageable and not everyone needs a car. This time last year I was doing 250 miles a week. I am lucky to do that a month now. You could also walk the school run/shops etc to save . Everyone needs to pay for energy bills. I can really see this being the beginning of the end and far worse than 2008 ever was.

It will definitely be the final nail in the coffin for hospitality as that is the first thing people are going to cut back on.

 

[Zenduri]

Fuel hasn't even dropped around me tbh. It is 189.9 for petrol and 199.9 for diesel! Meaning what it was at £1.36 (October/November 2021) it was costing me £300 a month in fuel is now costing me £440. That is just mental.

In terms of rates now for energy, the attached is Octopus current offer for 12 month fixed. Peoples thoughts?

Oooof, I fixed my dads energy the other week at 44 elec and 11.2 gas and that made my eyes water.

I would advise doing the math, work out the ofgem current tarrif +65% projected increase and i would do a speculative increase of +75% too and see how that compares to those prices you are offered. Then factor in another increase in Jan and most likely April too and make a judgement call. Fixed prices are going to start to rocket the closer we get to October too.

 

[dave1983]

I'm confused how it would be cheaper?

With Monzo flexi you basically have to pay for the product , then you can flex the payment essentially getting a portion of the money back.

for example 200 on a online purchase, you get £160 back and make the first payment.

 

[chrcoluk]

The average was low then, what was the worst case if its capped. Interested how many could benefit or requires use mostly off peak or something.

Well my first month was July. This month just gone by. Sundays usually get a drop in off peak rates but most other days are pegged at 35p, however the SC is less than half of SVT. My first bill was roughly for 3 weeks, so I added 33% and it came to £11 less. Will see what happens in August, it will definitely be less than SVT October onwards consistently though.

 

[413x]

I'm baffled how the markets are not in free fall.
Does it show how detached serious investors are from day to day life?

Even if the elite are OK. When even average income people are seriously struggling how can there be as much neutral views as there are?

 

[chrcoluk]

Fuel hasn't even dropped around me tbh. It is 189.9 for petrol and 199.9 for diesel! Meaning what it was at £1.36 (October/November 2021) it was costing me £300 a month in fuel is now costing me £440. That is just mental.

In terms of rates now for energy, the attached is Octopus current offer for 12 month fixed. Peoples thoughts?

Agile for Electric and Tracker for gas is better.

Tracker is 11p gas unit, Agile is 35p unit electric, and they will be fixed for year, they may also give you cheaper off peak (especially tracker). Finally agile is also only 21p day SC.

 

[Haggisman]

With Monzo flexi you basically have to pay for the product , then you can flex the payment essentially getting a portion of the money back.

for example 200 on a online purchase, you get £160 back and make the first payment.

So you get £160 cashback and the £200 purchase only costs £40?