how to calculate sensible direct debit amount??

gland

I have read lots of threads about increases in direct debits etc,but havent seen the advice im looking for.
I have received a letter from eon wanting to increase my direct debit from £85 to £178 a month.I have dug out my bills for last year and can see i need to increase payments to cover my bills.How do i calculate how much i should pay monthly?.I have a debit of £93.92 on the account,is it better to pay that and zero the balance before calculating the debit or not??.
Sorry if this has been covered but couldnt find it.

Magentasue

Best way is to work out your annual use in kwh and cost that at your current tariff. Divide by twelve for a monthly cost. Present to supplier and ask if you can set your DD at that - they may say no because they want your account at zero by spring but you can ask.

Obviously, the £93.82 needs to be paid in full or with your monthly payments. Trouble is, you should be in credit this time of year and so your supplier will want your DD to increase so that can be achieved next year.

littletommytucker

Using your bills for the past year, total the number of KWH that you have used... go onto www.uswitch.co.uk and enter this infomation, input what tarriff you are on, and see what it gives you as your annual cost at the current prices. Divide this by 12. Clear your current balance with your supplier, and then ask them to put your DD to the price you have calculated. If they dont agree to this, ask them how many payment you have left on your current payment plan, it may be only 4 or 5 payments for example, so they would be wanting you to pay a higher amount for the next 4 or 5 months, so that at the end you balance at £0. If this is the case, ask them to cancel your DD, and set it back up again, this should give you the amount you desire.

gland

thanks both of you.I have calculated both ways.If my maths is ok,it looks like £105-120 a month should cover my bill if i pay off the £93.92.
I shall call them tomorrow and see how it goes.
once again thanks:T

gland

well phoned today cleared the 93.72 and suggested £120 should adequately cover my anual usage.They were happy with my calculations and said yes.:cool:

Magentasue

Glad you sorted it - I've always found suppliers co-operative when I've done the maths and want to pay accordingly. I know there's a lot about them fixing DDs in their favour and I'm sure it happens but, I also think that in a lot of cases, the lack of co-operation is due to unrealistic demands from the consumer.