Monthly Payments or Annual Payments?

punky21

I am debating whether to re-arrange my monthly payments e.g. TV licence and pay for these in full. Any thoughts?

KTF

I normally go for monthly if it doesnt cost extra then I can put away the money I would have used to pay it off in full into a savings account to earn a bit extra interest.

Jonbvn

I think the TV license costs slightly more if you pay monthly.

TAG

We pay TV Licence and House Insurance in full once a year rather than monthly. I'm gonna do the same with the Water Rates next year as well.

My car is taxed for a year at a time as it's cheaper. And I pay my car insurance in full every year as well.

It works quite well for us. I don't know about you but we just found that doing everything monthly made it feel like we never had any spare money. If that makes sense.

We pay gas, electric and BT bills quarterly as well.

MarkyMarkD

Water bills are interest free if paid monthly. It's pretty daft to pay things up front if it's free to spread the cost.

But all the other things referred to are NORMALLY cheaper paid up front, so it makes sense to do so.

The rate of interest on monthly payment schemes is normally too high to be worth using as part of a sensible money management scheme.