Got the Dreaded Prepay Letter

**banana** · 06-06-2008, 10:23 AM

I got the prepay letter in the mail. Ready for this........

home heating oil prepay plan for 2008 - 2009

$4.399 a gallon

I dont think we will be prepaying this season. We will be hoping that the prices will come down a bit.

**Dixie** · 06-06-2008, 10:38 AM

If it's that high here in the southeast, I think I'll look for a wood heater to buy.

**Greebo** · 06-06-2008, 10:46 AM

Thank you for posting this. It reminded me to call the heating oil company and get an estimated usage on the property we bought.

Turns out the heating bill would be ~$2k this year, minimum, based on $4/gal. Which reinforced the belief that converting the units over to gas heat, each in control of their own heat (and responsible for utilities) is the right way to go.

**YankeeMom** · 06-06-2008, 11:16 AM

At the end of this heating season (march/april 2008) my mom was paying $5/gallon. I can't even imagine how much next years will be.

**Budgetmom** · 06-06-2008, 11:34 AM

Oh my! I'm so sorry. I have never had heating oil. We have always had natural gas. They are also saying to prepare for 20% price increases on our natural gas this year. There is just no escaping the price hikes going on every where.

**banana** · 06-06-2008, 01:04 PM

We are planning on getting a cord of wood so we can use the fireplace more.

**lisettelovebug** · 06-07-2008, 01:58 AM

One nice thing about oil is that you can shop around. You may have to pay for it when they deliver though. With propane you usually have the company's tank and have to deal with their prices or have another company install their tank. Right now we have natural gas thank goodness. but when we buy a house it may be something else.

With this prepay plan, do you get to make payments or do you have to pay for it all upfront. At the energy company I worked for 2 years ago, they didn't offer any prepay on oil anymore, just on propane. The oil prices were volatile even then. So, if you can split it up into monthly payments that is also a consideration.

**nodmicks** · 06-07-2008, 08:23 AM

Oh yikes!!! I just prepaid at $2.14 but ours is propane.

**Frugal Nurse** · 06-07-2008, 09:02 AM

OMG! that's totally insane!
I'm really sorry!

My poor ex-husband has no means of income except SSI and I feel so badly because he can't even afford to put the heat on. He started using space heaters in whatever room he was in.

I started sending him $220/mo to get some darn heat in that place.

I feel so badly for people who have to make a choice- heat, food, medication. It's just sad.

And it's NOT necessary! I won't get into the price gouging and huge profits of drug companies either.

**FrugalMomof3** · 06-07-2008, 09:13 AM

I am dreading having to purchase oil, we only have 1/4 tank right now but it is used to heat the water, I am trying to hold off from buying as long as I can, I just dont have $500 right now to get 150 gallons, yikes I am scared.

**freebs** · 06-07-2008, 03:42 PM

Some of you may want to look into wood heat. You can vent your wood burning stove thru the chimeny for the furnace. I know here a cord of wood delivered runs about $160-$170 and depending on size of house you could get by on this for a month. We heat 3000 sq ft with wood only, we dont even have a central heating system. The home we purchased did have a fireplace but we replaced it with a wood burning stove with a forced air blower for around $400 for the system. We have saved tons this way!

**brenda67** · 06-07-2008, 05:02 PM

Originally Posted by Frugal Nurse

OMG! that's totally insane!
I'm really sorry!

My poor ex-husband has no means of income except SSI and I feel so badly because he can't even afford to put the heat on. He started using space heaters in whatever room he was in.

I started sending him $220/mo to get some darn heat in that place.

I feel so badly for people who have to make a choice- heat, food, medication. It's just sad.

And it's NOT necessary! I won't get into the price gouging and huge profits of drug companies either.

I just wanted to say..(trying not to cry) that I think you are a very very special person helping your ex-husband out like that...I do feel very sad for anyone who has limited income and has to make a choice between something as vital as shelter,food,electric, heat or even a air conditioner ect..ect..because they have no other source of income or anyone to help them out.. unfortunately it's only gonna get worse as time goes on...(((((HUGS))))