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With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.

Such is the claim of Confused, which has warned that billions of pounds is being wasted throughout the country because people are failing to take advantage of cheaper energy packages available in their area. According to research carried out by the price comparison site, collectively the nation wastes 6.8 billion pounds over the course of the year because of a failure to move on to the cheapest tariffs available in individual regions. The group warned that with the credit crunch still biting down, switching over to a more competitive supplier is important for households who are looking to make a saving.

For those who have been unable to cope with the recent price hikes enacted by the countrys utility providers, taking out a debt consolidation loan may prove an effective way to get finances back on course by stretching repayments over a longer period of time.

Confused also urged consumers to ensure they looked at all options open to them, as there were significant price differences between providers costs. For example, homeowners with EDF Energy in the London Electricity grid district could save an average of 531 pounds a year by switching to the best tariff. Also, Eastern Electricity residents, could reduce their bills by a collective 592,365,691 pounds by moving away from EON to the cheapest provider.

Commenting on the findings, Gareth Kloet, head of utilities at Confused, said: "In parts of the UK as many as 4 out of every 5 people is using the default supplier and therefore spending more than is necessary. Many people shy away from switching, as they think that it will be a difficult process, but it is actually very simple. In fact, if you have not secured a competitive fixed rate, you should look to switch every six months - just switching to an online tariff and paying by direct debit could save 490 pounds per year."

He added that pursuing such habits could help people to "claw back" some of the billions of pounds that are needlessly spent every year on uncompetitive electricity and gas tariffs. Anybody who feels that they cannot switch suppliers because they owe too much to their current supplier, taking out a personal loan could be of use to clear their debt and then find a cheaper supplier.

Indeed, applying for a loan for the purposes of debt consolidation may be of interest to a growing number of people. According to figures published recently by financial services provider Abbey, 41 per cent of consumers now put paying off bills at the top of the list of their priorities for money management. Meanwhile, fewer than one in ten (nine per cent) said their biggest current concern was making sure they were putting enough money aside for the future.

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Abbi Rouse is Editor in Chief for All About Loans. Our visitors have access to cheap online loans of all types: From home improvement loans to bad credit debt consolidation loans.

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