Cancel direct debit

jimjames

lsur02 said:

Of course you change the amount every so often if usage changes. Also, surely it is a recognised method? It might not be what companies prefer because the customer is in control. Bulb certainly gave me the ok when I asked them about the change and volunteered the account details.

Look at the Oct price cap tables for the difference between DD and pay on bill. For average use you'll be paying £110 more for gas and £100 more for electricity if you choose to not pay by DD. Your choice but it's not money saving to pay £210 more than you need to for something That seems crazy to me.

I prefer to pay for what I use each month by DD and still get the discount.

User70200

The options above depend on your supplier and if they recognise Standing Order with the same discount as Direct Debit. If you do pay by SO then the responsibility is then on you to make changes to the payment amount to ensure you’re covering your usage.

Variable Direct Debit could be an option but as pointed out the winter bills will generally be more than summer as you’re paying for the energy used each bill. You may wish to consider how often your supplier bills you, monthly or quarterly, as it’ll be more of a strain to pay a quarterly bill in one. Check the meter readings on the bill too and if estimated give a meter reading to ensure you’re paying for the amount you have used and not and over or under estimate.

Personally I prefer the certainty of a set amount each month but check the amount calculated by the supplier myself and am prepared to challenge if it seems this a unnecessarily high. However with the change to the Cap with new prices every quarter this will make it harder to forecast.

dunstonh

I’m thinking of cancelling my direct debit and paying my bill monthly, can anyone advise if this is a good idea ?

What will that achieve?   (nothing sensible is the answer)

Looking back in the last 12 months I only was only in debit on my bill for 1 month ( January) , always end up in credit at the end of the 12 months . 

If your 12 months ends in the summer or autumn period, then you would expect to be in credit if you are doing things correctly.

[Deleted User]

In the early post-War years, many people prepared for Christmas by putting money into a Club each month. We almost in that situation now. 

Personally, before making any changes to how I pay, I would want to sit down with a calculator and work out what I would have paid for my usage in December and January against the new tariff rates. In other words, do I have the self-will and means to put those amounts of money to one side for when the bills hit the mat?

london21

louisepineapple said:

I’m thinking of cancelling my direct debit and paying my bill monthly, can anyone advise if this is a good idea ? Looking back in the last 12 months I only was only in debit on my bill for 1 month ( January) , always end up in credit at the end of the 12 months . 

Contact your energy provider.

I contacted Bulb and now only pay by direct debit what I actually use rather than estimates of average use.

I like this way.

OC_66

I'd speak to your energy provider and get their thoughts to be sure. 

Mobtr

lsur02 said:

Of course you change the amount every so often if usage changes. Also, surely it is a recognised method? It might not be what companies prefer because the customer is in control. Bulb certainly gave me the ok when I asked them about the change and volunteered the account details.

No company is going to refuse a SO and will give you the bank details to set it up but it’s not usually recognised like a direct debit is.  Its  just like you making payments with your debit card, you pay the amount you want to pay, not necessarily the amount you need to pay so expect to get reminder letters if you still have a balance on your bill.