Friday 21st of August 2009
An increasing number of Britons are turning away from paying their energy bills by direct debit, but this may not be the best debt management move, a claim has suggested.
Many people are worried about having large amounts of cash taken out of their accounts and prefer to pay by cash or cheque, uSwitch.com said.
However, while they may think this is a positive step for debt management, they end up paying more for their energy bills by not staying on direct debit, or could be tempted to miss repayments during tight times.
Consumers will lose out on a combined £33.5 million in direct debit discounts if the predicted 342,000 households move away from this payment method, the website asserted, money which could be put towards other financial commitments such as credit card debt.
"Be aware that coming off fixed monthly direct debit and paying by cash, cheque or variable direct debit will cost you money. This should always be a last resort," advised Ann Robinson, director of consumer policy at uSwitch.com.
Households who struggle to manage all their bills could find that through a debt management plan, a financial expert will highlight areas where money can be saved, which could include paying for energy via direct debit.
By Ashley Littley
