Just an idea to get around bank charging....

BallandChain

It's simple, why not use your main a/c for your wages to be paid in and then pay your bills manually with cash. That was the old way of doing things before direct debits became the norm! Any purchases you need to make only get paid by cash. That way you cannot go overdrawn as you can see where your money is going without using cheques or direct debits.

Just think how much more control you would have over your money and if enough people did this the consumer would be back in the driving seat and not the banks!

lilac_lady

I'd like to try a version of this. I would still get my main bills taken care of by direct debits as it's easy to forget something. Once my wages are in my account and the DDs are off I am going to try and pay everything by cash.

dunstonh

The easist way to get around bank charges is not to spend what you dont have and manage your money better.

A good way to make sure you dont spend what you dont have is to have two current accounts. On pay day you have a standing order for the total of all your fixed bills transferred to the number 2 account. All the fixed bills are paid from that number 2 account. Whatever is left in the number 1 account is yours to spend.

if enough people did this the consumer would be back in the driving seat and not the banks!

Consumer is in the driving seat for the time being. Its only a minority that suffer bank charges. The majority enjoy free banking... for the time being.

BallandChain

Thanks for your replies guys. Good idea about having two accounts, but wouldn't it be great if we didn't need banks. I forgot to mention in my original post about the security issue aswell. If you don't use a card or give out your bank details to buy goods then your account can't be susceptible to fraudsters.

If you have wages those are always paid directly to a bank a/c, there is no getting around that one. So why not use one a/c for wages and the bills get paid by cash. Ok, it might be the long way of doing things but if it can help those who are finding it difficult to manage their money this could only help.

The other thing I wanted to mention was budget, budget, budget. It is so easy to get credit and buy now, worry later. Ask yourself do you need it, could you live without it. (I know stating the obvious.) Cut back on those direct debits you probably don't need or can pay in cash with.

There was a time I couldn't afford a car so I caught the bus, cycled or walked saving on MOTs, petrol, road tax, insurance and breakdown cover. This all amounts up and you just have to be really strict with yourself.

Dickieburd

Another possibility is having a savings account with a card that you could get paid into and as it is a savings account you do not risk going overdrawn or get the charges as well. You could get the cash out and go to a paypoint and pay any major bills that way, and for bills like rent they could be paid into the appropriate bank by cash if that was convenient. This would also take away any possible charges for using a current account that were rumoured earlier this year.

Mikeyorks

BallandChain wrote: »

It's simple, why not use your main a/c for your wages to be paid in and then pay your bills manually with cash. That was the old way of doing things before direct debits became the norm! Any purchases you need to make only get paid by cash. That way you cannot go overdrawn as you can see where your money is going without using cheques or direct debits.

Just think how much more control you would have over your money and if enough people did this the consumer would be back in the driving seat and not the banks!

Have you got into the Christmas spirit (bottles) a trifle earlier than the rest of us?;)

How is dragging large sums of cash all over the place, having to demand and file receipts (as you have no other audit trail) .... putting me in charge? It would certainly put me 'in the driving seat' .... as I'd have to travel hundreds of miles to pay them all!

To get 'in the driving seat' metaphorically .... all you need is a small agreed overdraft in order to prevent any mistakes costing you. A current account that pays you over 6%, therefore you keep it reasonably 'topped up'. A PC .... and banking / paying bills doesn't cost you a penny .... and you can see the state of play by simply logging in.

And cash ..... is far more of a security risk than using your Debit Card.

MarkyMarkD

In line with what Mike says, how can it possibly be easier to budget using cash?

If you are capable of setting aside little pots of cash for each bill you have to pay, it's no harder to keep a little note of the bank balance you need to set aside for each bill you have to pay.

And you pay less by DD for most utilities.

BallandChain

Mikeyorks wrote: »

Have you got into the Christmas spirit (bottles) a trifle earlier than the rest of us?;)

How is dragging large sums of cash all over the place, having to demand and file receipts (as you have no other audit trail) .... putting me in charge? It would certainly put me 'in the driving seat' .... as I'd have to travel hundreds of miles to pay them all!

To get 'in the driving seat' metaphorically .... all you need is a small agreed overdraft in order to prevent any mistakes costing you. A current account that pays you over 6%, therefore you keep it reasonably 'topped up'. A PC .... and banking / paying bills doesn't cost you a penny .... and you can see the state of play by simply logging in.

And cash ..... is far more of a security risk than using your Debit Card.

When you say dragging large sums of cash all over the place....and having to demand receipts, you make it sound like it's a chore. Hell, before direct debits and cards were around people paid manually. It's not difficult you just go to a paypoint or wherever you pay your bills pay your money and get the bill stamped. No need for demanding anything!

Also cash is a whole lot safer than cards, you only have to read this forum to see that. Incidentally most people do not have bills go out on the same day (unless they have set up direct debits that way) so bills paid manually can be paid on different days.

BallandChain

MarkyMarkD wrote: »

In line with what Mike says, how can it possibly be easier to budget using cash?

If you are capable of setting aside little pots of cash for each bill you have to pay, it's no harder to keep a little note of the bank balance you need to set aside for each bill you have to pay.

And you pay less by DD for most utilities.

It's only cheaper by direct debit because it's easier for the companies. I've tried cancelling a direct debit in the past, bank said, "Cancel it with the company concerned". Went to the company who referred me back to my bank. Bank didn't want to know. End result closed account and bank lost my business.

Like I said it wasn't just about getting in control of finances (avoiding bank charging) but when you read all the security issues on this board with people's accounts/cards that is another reason not to leave a paper trail for the fraudsters!

iceicebaby

I dont have time to pay bills manually. I work. DD suits me fine as I make sure that the money is available in my account ready for the DD as stated in my T&C so no charges are incurred.

Plus I get a discount for paying most things by DD.

And as for the point that people always used to pay by cash years ago ...... well we all also used to live in caves!

BallandChain

We didn't live in caves at the time of paying by cash though.