Direct Debit or Save

alli_baba2

My debts at last are getting smaller but I am now in a dilemma. I have direct debits set-up to pay things like the council tax, tv licence, etc. My question is should I save up the money and pay these off in full or carry on paying these off each month via direct debit. I can see that paying it each month is usually interest free, but on the other hand, if I save the money up I can earn a little interest - I really don't know what is the best way. Can anyone offer some suggestions? Many thanks

Keith

The problem you would encounter is your payments are against this years bill from April, if you miss one of these payments then the council can force you to pay the entire bill. I see your point but the direct debits are paying this years bill not the one due in April 2006

loubie_lou

The interest may only be in pence though!! Depends on how much your coucil tax is I suppose. I would pay by direct debit monthly, gives me a clearer picture where I am every month anyway!

delboypass

I pay everything off in full if i have the cash. Less chance of things bouncing and as most people know high account maintenance charges.

Xbigman

Gas and elec are cheaper on DD, but make sure you don't overpay.

Council tax is payable in advance if paid as a lump sum so you save money by paying by DD.

TV licence is half in advance and half in arrears, so no real benefit either way.

Insurance is payable in advance but you save as most companies charge for monthly DD.

*If* you are on a water meter, most water companies offer no discount for DD payment so this is the only one that can make you money by not going the DD route. If you are paying a set amount they want it monthly or as an upfront lump sum so DD is the way to go if billed this way anyway.

So no real savings to be had.
Regards



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