Energy bills still a cause for concern for many
By Mr Bankruptcy
30th August 2023
With autumn on the horizon many business operators and homeowners will begin thinking about how their use of energy will increase as the heating is turned back on and the lights burn for longer as the nights draw in.
The financial challenge that increased energy bills caused last winter are still on the minds of many of us and it’s not surprising that the BBC has recently reported a rising number seek support for energy bill debts.
Paying energy bills continues to be a struggle
As reported by the BBC, Citizens Advice has seen in the first six months of 2023 a 17% increase in the number of people contacting them with energy debts compared to the same period last year. They also noticed that the average debt of those people contacting them was £1,711, which is up a third on 2019 figures.
Before winter has even started, many people are already behind on repaying their energy bills, along with other rising costs, such as food. Citizens Advice say that 12% of the people it surveyed have resorted to loans or credit cards to pay their energy bills.
Ofcom has announced a fall in the energy price cap from this October, but the average annual gas and electricity bills for households remain higher than they have been historically. The fear is that, with growing debts and increased energy usage over the coming months, for many there will be little relief from debt on the horizon.
What can you do to help manage your debt?
With any debt, it is important to contact your creditors to make them aware of your situation. As difficult as that conversation may seem, seeking support and advice is often the first step on the journey to clearing that debt.
In our blog we offer support and advice to individuals and businesses to help them with a range of debt issues. If you’re struggling with debt, we hope that these examples of some of the support and information we share on our blog will help you to see a way forward and encourage you to seek further support if needed:
- Coping with the rise and rise in the cost of living
- Create a budget that works for you
- How to use your credit card and credit wisely
- The important of managing finance related stress
- How to prevent creditors knocking at your door
About James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a wide range of advice and professional services to individuals and business owners/directors who are facing unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Do you qualify for one of our free consultations
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.
How can businesses protect themselves from rising inflation?
By Mr Bankruptcy
21st August 2023
Everyone is keeping a close eye on inflation figures at the moment to see how it will affect their lives, families and businesses. While the signs are that the rate of inflation is beginning to drop, it still means that prices are increasing, albeit at a slower rate.
Here is the James Rosa guide to some key steps that you can take to protect your business from the affects of high inflation.
How does inflation affect businesses?
High inflation is very challenging for businesses as increasing costs affect them across all areas of operation. This means business owners must be mindful of higher production and labour costs, price rises throughout the supply chain that cut into margins, and pressures on consumer spending which can all reduce revenue; and then there’s higher borrowing costs.
These examples alone demonstrate how businesses owners need to take time out to reflect on how they are operating and look for adjustments to minimise or negate the affects of inflation.
7 ways to protect your business from inflation
While the impact of inflation can affect all businesses, the most effective way for an individual business to manage these challenges will vary depending on their specific circumstances. But for all business owners, here are some key general ways to protect your business:
- Understand your costs: Knowing your fixed and variable costs will give you clarity on current margins, what can be achieved and what needs protecting, identifying your most profitable and not so profitable goods and services.
- Consider adjusting pricing: This can be a tough call to make as no-one wants to risk alienating customers, but increasing prices to reflect the increased costs faced by your business may be a necessity. If managed thoughtfully and clearly communicated, it doesn’t have to mean that you will lose customers.
- Cutting costs: If you are able to cut costs in some areas to balance increases in others, it may be possible to avoid increased charges to customers.
- Improve operational efficiency: Look at changes that can be made to processes, tools and productivity to improve cost-effectiveness.
- Consider how you borrow: Rising inflation usually means banks upping their interest rates, which means borrowing becomes more expensive. Your loans may start to become unaffordable, with incurred costs for late payments. You need to review your borrowing ad ensure you only borrow when necessary.
- Manage cashflow: Keeping money coming into the business on time will be increasingly important to ensure your business survives rising costs.
- Make a plan: Track financial and market trends, working with scenarios and how they may affect you so that you can identify potential weaknesses, dangers and opportunities.
Business have faced a lot of challenges over the past couple of years, but many have demonstrated resilience and an ability to adapt. Inflation is just one more challenge that can be overcome through effective planning.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. Adopting a supportive, friendly and supportive approach with our clients, we offer a full range of advice and professional services to both individuals and business owners/directors who face hard-to-manage debt or who are involved in a civil or commercial dispute.
Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Talk to us and find out if you qualify for a free consultation
If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.