Can companies insist that I have a DD setup?

StressedSteph

Sorry this could have been asked a million times.


Both my husband and I are self-employed so money comes in at various un-scheduled times of the month.


We have had our LBM and are sorting out our finances, but one problem that keeps cropping up, is Direct Debits coming out before money has hit our account, sometimes annoyingly just the day before. This then costs us £8 of bank charges and loads of hassle from the company whose bill has bounced.


I wondered if maybe until we are abit more on top of our outgoings, could I cancel ALOT of my set up direct debits and insist on paying them when the bill comes through.??


Abit scared to just blithely cancel them in case it stirs up a loads of hassle.


Think I would feel a lot more in control if I could decide exactly what day bills got paid. Also those £8 bank charges really stack up during a rough month.


I will of course make sure bills are paid as close to their due date as possible, but sometimes if you haven't got ANY money another £8 bank charge is just adding insult to injury.


Many thanks xx

FinanciallyUnsavvy

As far as I know, all companies have to offer alternative means of paying other than direct debits.

I wouldn't recommend just cancelling the direct debits straight from your bank though - it is probably worth contacting each supplier and requesting to cancel the direct debit in lieu of an alternative payment type.

You could also change your direct debit date to a date that ties in better with your pay day.

Dave_the_Ginger_Cat

Some contracts may be conditional on having a DD set up, or they may offer a cheaper rate if a DD is in place.

You could consider setting up standing orders instead - that way you keep more control of them

happy_bunny_2

Cancel them so save charges then contact the company.

Some charge more to pay online (like BT) but probably still cheaper than £8 per bounced DD. Some banks will close your account if there are too many of those.

StressedSteph

Thanks for your advice. Think I may go ahead and cancel a lot of them. Then I will feel abit more in control of what goes out and when.


Thanks again xx