Set up your own direct debits

LateStarter

Hello all,


Many of the rewards for switching bank accounts require you to close an exisitng account which has to include a couple of direct debits. How do you get these direct debits? Are there any accounts which let yout set up recurring payments as DDs rather than standing orders?

[Deleted User]

Google?

Move some of your current DD’s to this account instead making token payments each month to cover them?

Katiehound

This topic comes up frequently on here.
Split household DDs between accounts: power, telephony, water, council tax, insurances (but can increase premiums)

Here are a few other suggestions:
POsavings, Bmidshires savings, Christmas savings club (money not protected but it is only a small amount,) charity DDs- quite a few advertise for £2 or £3 pm

Some folk have 4 x CCs and spend on each one each month in rotation. Set up DDs to pay full amount.
Card A used in 1st week
Card B used in 2nd week ...etc

18cc

If you are asking the question if you as a person can set up a direct debit the answer is no. There are several hoops to jump through before you can be a direct debit originator

TreasureHunter

Katiehound wrote: »

Some folk have 4 x CCs and spend on each one each month in rotation. Set up DDs to pay full amount.
Card A used in 1st week
Card B used in 2nd week ...etc

That's a novel way of doing it. I haven't heard that suggestion before.

SlovakianGuy

TreasureHunter wrote: »

That's a novel way of doing it. I haven't heard that suggestion before.

Really? This was probably the first thing that came into my mind. Credit cards cost you nothing if you are financially literate and disciplined (in fact, you can even earn some pennies on regular shoppings). And you can have 10 cards or even more if you want. Just buy a sandwich or something small using a different card every time (all within one month), so you have something to pay, and, of course, set up a direct debit for each card to be paid in full every month. The problem is if you don't have credit cards, or you only have one, and you want to get 5 more ASAP. That would mean too many hard searches in a short period of time which is definitely not good for your credit report / score. Tandem bank however, promises to offer you their credit card using only a soft search if you've been using their app for a couple of months (you can tie all your bank accounts to it and see them in one app). But first they need to building their own system which will use soft searches (allegedly within the next few months). For now, they still rely on some third party system, so you would have to apply and trigger a classic hard search.

TreasureHunter

SlovakianGuy wrote: »

Really? This was probably the first thing that came into my mind. Credit cards cost you nothing if you are financially literate and disciplined (in fact, you can even earn some pennies on regular shoppings).

While naturally I use a couple of credit cards for DDs, I haven't considered getting four specifically so I could have one for every week of the month. Not sure my purse could handle that much plastic. Of course I can see it's a great help for those happy to juggle with a few, as you say.

Katiehound

I don't actually use that system but I needed yet x 2 more DDs for Barclays.
I discovered that one could be a Barclaycard. So what I do is make one small payment (today a £3.50 swim!) per month on it which is paid by DD.
The CC I use for everyday expenditure gives me a small cashback