Some Americans May Be Expected to Borrow to Pay for their Energy Bills

We've all been hearing of how heating costs are slated to significantly increase this year, and according to a recent poll, for many Americans this may mean resorting to borrowing money and using credit cards just to be able to afford paying their heating bills.

Coincidentally, heating bills are rising at a time when utility companies across the country are now broadening their payment options for their customers, and this includes allowing credit cards to be used to pay for utility bills. However, while paying for living expenses with credit cards may be fine for those who can afford to pay off their balance every month, using a credit card to pay for an electric bill may not be a good idea for those who are prone to carrying a high revolving balance.

While more than 2/3 of the above poll’s participants stated that they would try to keep their energy bills low by turning down their thermostat or by using other sources of heat such as supplemental space heaters, Perry Sioshansi, president of Menlo Energy Economics, a San Francisco based energy consulting company, notes that Americans will need to make better, long-term changes when it comes to their energy consumption habits. In fact, Sioshansi notes, "We all need to make those decisions when we buy appliances, when we're replacing appliances. When the light bulb goes out, buy the more efficient kind and put it in, get the more-energy-efficient insulation for the walls…these are permanent things that improve the utilization of energy." Here are a few tips you can follow to keep your energy bill under control:

1. Set your thermostat as low as comfortable in the winter and as high as comfortable in the summer. By making small, one degree changes, you can save up to 3 percent on the day’s heating or cooling costs.
2. Use space heaters as supplemental sources of heat. When used intermittently, space heaters can result in pretty significant energy savings.
3. Regularly clean air registers, baseboard heaters, and radiators as needed.
4. Close drapes at night to help reduce any heat loss, and be sure to weatherize your home to prevent any unnecessary leaks.
5. Have a professional service your heating and cooling system once a year to ensure peak operational efficiency.

Also, instead of using credit cards to pay for utility bills, consumer credit counselors also urge the public to consider other utility payment options before borrowing to pay energy bills, including the following:

- Government assistance programs that offer grants to low and moderate income families to help subsidize heating bill costs.
- Reduced or delayed payment plans offered by utility companies to help customers budget energy expenses, including averaging payments over the course of the entire year to avoid getting hit with a large winter bill.
- Charitable programs sponsored by utility companies to help customers who are struggling with their bills.

In other words, using credit cards to pay for basic living expenses should only be your last option after all other avenues are explored and exhausted.