Rachel Robson reveals how much you can save if you pay your bills by direct debit.
Rachel Robson reveals how much you can save if you pay your bills by direct debit.
Did you know that if you switch to paying your household bills by direct debit, you could save yourself up to two hundred and thirty-five pounds a year? Here’s how.
Energy bills
Many energy companies will offer discounts to customers who pay for their electricity and gas by direct debit. For example, if you’re with British Gas you can save an average of seventy-three pounds per year if you pay by direct debit. And nPower offers an annual discount of up to one hundred pounds.
Mobile phone bills
Some mobile phone providers will charge extra if pay by a method other than direct debit. If you don’t pay by direct debit with T-Mobile, for example, you will be hit with a three pound monthly fee.
Orange also charges three pounds fifty a month for non-direct debit payments, and Three charges four pounds every time you pay by cheque.
Landline and broadband
If you have a landline phone and you’re not paying your bills by direct debit, watch out for payment processing fees. BT charges one pound fifty a month for non-direct debit payments.
Similarly, if BT provides your broadband, you could also save yourself eighteen pounds a year if you pay by direct debit.
Credit card bill
It’s also worth setting up a direct debit for your credit card payments. This will ensure you never forget to make a monthly payment. And this means you won’t get charged a late payment fee or lose out on your interest-free deal if you have a nought percent balance transfer credit card or a nought percent on new purchases card.
Finally...
Although in most cases paying by direct debit can save you money, you should avoid paying for your car insurance or home insurance in monthly instalments, rather than in one go. That’s because you’ll end up being charged more.
If you’re worried about how you will afford to pay for it all in one go, make sure you use a nought percent on new purchases credit card. You can compare a range of credit cards right here at lovemoney.com.