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Debts don't stop rising in a recession, so you have to do what you can now to lower your outgoings, consolidate your bills and avoid further adverse debt problems in the future.

According to new, startling prediction from Ofgem, the worst case scenario is an annual energy bill for every UK household of of £1,982 in 2016. However, uSwitch.com has predicted that bills could reach as high as £4,733 a year by 2020, nearly four times higher than they are today.

This is a wake-up call for us all. The £5,000 a year energy bill may seem like an outside possibility, but we have to remember that uSwitch figures say energy bills have doubled in the last five years – we are entering a new era of high cost energy and households will have to adapt their behaviour accordingly.

That means doing all you can to reduce other debts like credit cards and personal loans. We cannot do anything about the fact that gas and oil will become a premium in the next few decades, but we can do something about reducing our own debts so as to be able to meet any rising bills head on in the future.

Ann Robinson, director of consumer policy at uSwitch.com says: "Consumers must now heed the underlying message that energy bills are inevitably going to rise in the medium to longer-term. My advice to consumers is to invest in making your home more energy efficient, reduce the amount of energy you use and make sure you are paying the lowest possible price for it."

Talk to a mortgage adviser about your financial situation in the middle to long-term. You need to be able to pay your bills, reduce your debts and begin saving all at the same time – a big ask for those who are struggling to get by right now. But there are ways and means to reduce your financial pressures – but the only way they can happen is by talking to professionals who can help.

SOURCE: Ofgem, uSwitch.com, 09/10/09

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