What Does “In Debit” Mean?

Seeing the term “in debit” on your energy bill can be confusing, especially if you’re not familiar with billing jargon. However, it’s simpler than it sounds.

When your energy account is “in debit,” it means you owe money to your energy supplier. In other words, the amount you’ve paid doesn’t cover the energy you’ve used, so there’s an outstanding balance to settle.

This can happen for various reasons, such as increased energy usage or the estimated bills being lower than your actual usage. Additional changes in your energy rates can lead to you being “in debit.”

In this blog, we’ll break down why you might see “in debit” on your bill, what it means for your payments, and how you can get back on track. When you understand the “in debit” meaning and how to resolve it, you can ensure your bills account stays in good standing and avoid unexpected charges.

What Does Being “In Debit” Mean on a Bill?

Have you been asking the question, “Does being “in debit” mean I owe money?” Well, the short answer is yes, being “in debit” on your bills means you owe money to your energy supplier.

This happens when the amount you’ve paid is less than the cost of the energy you’ve used. For example, if your monthly payments are estimated and turn out to be lower than your actual usage, your account will show a debit balance. It means you’ll have a negative balance that needs to be cleared.

If you’re “in debit,” your energy supplier will usually arrange to take payment from you, but you may want to pay the difference sooner, if there is any chance of additional charges or issues with your energy supply. Our energy usage can fluctuate significantly throughout the year. However, if you’re having trouble sticking to your budget, you may want to try to use less in the coming months to keep on top of your bill costs.

How Does Being “In Debit” Differ from Being “In Credit”

Being “in debit” and being “in credit” are opposites when it comes to your energy bills.

If you’re “in debit,” it means you owe money to your energy supplier because your payments haven’t covered your usage. On the other hand, if you’re “in credit,” it means you’ve paid more than you’ve used, and the extra money sits in your account as a positive balance, to be used against future bills.

Being “in credit” is usually a good thing, while being “in debit” means you need to pay off the balance. Either way, if you regularly check your bills, you’ll be able to stay on top of your payments.

Reasons Why You May Be “In Debit” on Your Energy Bills

Now we have a clearer understanding of the “in debit” meaning, let’s talk about why you may find yourself “in debit” on your energy bills. Here are some of the common reasons:

Underpaying Due to Estimated Bills

Energy companies often estimate your usage if they don’t receive regular meter readings. If their estimate is too low, you’ll end up owing money once your actual usage is calculated.

Increased Energy Usage

During colder months, most of us end up using our heating more frequently. However, if your monthly payments are based on your average usage, this higher consumption can quickly lead to a debit balance.

Changes in Energy Prices

If your supplier raises their rates and you’re still paying the old amount, your payments may fall short of covering your usage, causing you to be “in debit.”

Missed or Partial Payments

If you’ve missed a payment or only paid part of your bill, the unpaid amount will show as a debit.

The best way to avoid getting into debit in the first place is to regularly check your bills and submit accurate meter readings. That said, if you do find yourself in this situation, it’s a good idea to contact your supplier to discuss payment options and aim to clear the balance as quickly as possible.

How to Check If You’re “In Debit”

To check if you’re “in debit,” you could review your latest energy bill or log into your online energy account, if you have one. Look for words like “in debit,” “debit balance,” or a minus sign (-) next to the balance amount. These indicate you may owe money to your supplier.

Your bill will usually show a breakdown of your payments and energy usage, making it clear if there’s an outstanding balance. However, if you’re unsure, you can always call your energy provider to confirm.

Is Being “In Debit” Bad?

Being “in debit” on your energy bill isn’t necessarily bad, but it’s something you may want to address sooner rather than later. Simply put, being in debt means you've used more energy than you've paid for, which is common during colder months when most people’s energy usage spikes. 

Why It’s Not Always Bad

It can be temporary, especially if your payments are based on estimates rather than actual readings and can depend on when your energy provider takes payments.

Many people go “in debit” during winter and catch up in summer when their energy usage decreases.

Why It Can Be a Problem

If it’s left unaddressed, the debit can grow and become more difficult to pay off.

Consistently being “in debit” may suggest your monthly payments are too low to cover your usage.

If it reaches a significant amount, it could affect your credit score or result in supply restrictions (though this is rare and usually a last resort).

How Being “In Debit” Can Affect You

Being “in debit” on your energy bills can impact you in many ways.

Firstly, if you don’t pay off the balance, your supplier may add late payment fees or increase your monthly payments to cover the amount owed. Ignoring the debt for too long could even lead to disconnection of your energy supply in extreme cases.

Additionally, if you want to change your energy provider, you could face issues as some suppliers may not allow you to switch until you’ve cleared your debt. It can also make budgeting difficult, especially if your payments suddenly increase to cover what you owe.

To avoid these problems, you need to keep an eye on your bills and contact your supplier if you’re struggling to pay. Many suppliers also offer payment plans to help you catch up, so try to look for those.

What to Do If You’re “In Debit”

If you find yourself “in debit” on your energy bills, don’t panic. There are steps you can take to fix the issue.

Double-Check Your Bill

Sometimes, estimated bills can be wrong if your energy provider hasn’t received recent meter readings. In case of any inaccuracies, you can provide up-to-date readings if necessary to ensure your bill reflects your actual usage.

Contact Your Energy Supplier

Your supplier can explain why you’re “in debit” and help you work out a solution. If the debt is small, you may be able to pay it off in a single payment. If it’s a larger amount, your supplier may have a payment plan that lets you spread the cost over many months to make it more manageable.

Review Your Energy Usage and Tariff

If you’re consistently “in debit,” you might be on a plan that doesn’t suit your needs. You could switch to a better tariff or try reducing your energy consumption to prevent future debit balances.

Get Financial Help

If you’re struggling to pay, you can ask your supplier about financial support schemes or advice services. Either way, the most important thing is to address the issue as soon as possible to avoid extra charges or supply disconnection.

How to Avoid Being “In Debit” on Your Bills

Avoiding being “in debit” on your energy bills is all about staying on top of your payments and usage.

Provide Regular Meter Readings

Estimated bills can be inaccurate, so giving your supplier updated readings will help ensure you’re only billed for what you’ve actually used.

Review Your Payment Plan

If you’re on a fixed monthly plan, make sure your payments are enough to cover your average energy usage. If your usage changes, like during winter, you may need to temporarily increase your payments to avoid falling into debit.

Monitor Your Energy Usage

Making small changes like turning off unused appliances, using more energy-efficient devices, and insulating your home are great ways to lower your bills.

Keep an Eye on Energy Prices

If rates increase, your current payment plan might not be enough, so you’ll need to adjust your payments to prevent a debit balance.

Use Your Credit Balance

If you find yourself being “in credit” on your energy bills during warmer months, you’ll be owed money by your energy supplier. However, instead of asking for a refund, you could consider leaving the difference in your account to cover the inevitable increase in your energy usage.

Use an Online Account or App

These tools can help you track your usage and payments more easily, helping you avoid nasty surprises when your bill arrives.

When to Seek Help

If you’re struggling to clear your “in debit” balance or keep up with your energy bills, it’s important to get help sooner rather than later.

You can contact your energy supplier to discuss any payment plans or financial assistance schemes they may offer. Your supplier may be willing to work with you to create a manageable payment schedule.

If you’re still finding it difficult, you could also consider reaching out to debt guidance services like Citizens Advice, or you could research UK government schemes that you may be eligible for, like the Warm Home Discount.

Remember that ignoring the issue can make things worse, so it’s best to tackle it head-on. Help is always available, and taking action early can prevent further problems.

Need Financial Assistance to Resolve Your “In Debit” Status? Call Salad’s Experts

We hope this guide has given you a better understanding of the meaning of “in debit”. However, if you are unable to clear large debit balances and need urgent financial aid, we may be able to offer support.

At Salad, our affordable loan options are available for every employed UK citizen. As one of the UK’s leading online lenders, we understand that the credit score system isn’t always fair. That’s why we use an open-banking-based assessment to evaluate the financial situation of every applicant.

We’re an FCA-regulated and authorised organisation, so you can trust us to keep your financial data safe. With our ‘More Than Your Score’ loans, we provide affordable loan options for working people, regardless of their credit score.