BT charges ‘could increase debt problems’

BT’s decision to increase charges could cause some of the most financially vulnerable people in the country to develop debt management problems, it has been suggested.

According to Simplyswitch.com, the telecoms company’s decision to raise late payment fees to £7.50 as of tomorrow (May 1st) may see consumers’ affordability to make personal loan payments squeezed.

Meanwhile, BT is set to charge an extra £4.50 every four months for those customers who choose to pay either by cheque or cash.

Founder Karen Derby claimed the move is penalising those who do not pay via direct debit.

She said: "This presents a problem to the millions of customers who mistrust the direct debit system or do not hold bank accounts, usually the elderly and vulnerable who can least afford to pay extra."

Ms Derby suggested that as the new charges will affect some 5.5 million consumers, those looking to manage their debt could be advised to seek a different supplier.

Earlier this month, Peter Wood, head of savings for Sainsbury’s Bank, suggested that changing to competitive financial products, such as savings accounts and personal loans, could save consumers hundreds of pounds.

Interfinancial providing you with breaking debt management news.