How to review your Direct Debits
How to review your Direct Debits
Direct Debits are a great way to pay your bills, but once they are set up, what do you do next? In this guide, we will take a look at how to review Direct Debits, including updating, freezing, and cancelling them.
How to check your Direct Debits
Once you have set up your Direct Debits, you don’t need to worry about your bills being paid on time. As long as there’s enough money in your account, you don’t need to do anything else. Check out our guide to learn how to set up a Direct Debit.
However, if you want to keep an eye on them or update them, you can do so just as easily as you set them up. It’s a good idea to check your Direct Debits every now and then to make sure they are correct and that you’re not still paying for bills that you no longer need to pay for.
Check for forgotten payments
There may be some payments that slip your mind. For example, if you signed up to a free trial and you were supposed to cancel it before you were charged. Or if you signed up to an online magazine subscription that you no longer read. Checking your Direct Debits will remind you about these easily forgotten bills so that you can amend or cancel them and only pay for the bills of services that you use.
Look to see if you can freeze payments
If money is a bit tight, there may be the option to freeze a service, and therefore, payment for it. For example, your gym membership or music subscription. Before you amend the Direct Debit, you will need to contact the company to see if they allow payment freezes. If this is possible, the company should stop taking money from your account after an agreed date. However, you can also freeze the payments yourself by contacting the bank. Here at thinkmoney, you can amend your Direct Debits via the app.
How to stop a Direct Debit
When cancelling a Direct Debit, you will need to contact the company who is charging you first to let them know that you no longer require their service. If it’s a month by month contract, then this should be no problem. However, if you have signed up to a fixed contract, it could be a bit trickier to cancel; it may incur a cost to leave early or you may need to provide notice.
Once the service has been cancelled, after the final bill, the company should no longer take money from your account. However, if you wish to take the extra precaution, you can also arrange to cancel the Direct Debit with your bank so that no money can be taken by mistake. You can contact your bank either by phone, online, or in writing requesting the payments to be stopped.
How to change a Direct Debit to get a better deal
Keeping on top of your finances, including your Direct Debits, is also a good way to save money. If you have full visibility of your current account, you can work out how much you spend each month and on what. This can help you see where you could cut back to help with budgeting your money. For example, if you’re paying a lot for your broadband package, why not see if there’s a better deal out there? Also, cancelling unwanted Direct Debits and services that you don’t make full use of, is a quick way to save money. For more tips on how to save money, check out our saving hacks guide.