Consumers fleeced over bill payment methods
Many people these days are keen to try and reduce their outgoings, and in the current financial climate with so many people struggling financially making cutbacks has become vital for some people. One of the ways in which many people try and cut back is through reducing their bills by doing thing such as switching providers, which can help to make significant savings.
However, one way in which many consumers are wasting millions of pounds a year between them on their bills is via their payment methods. Many people fail to realise that companies these days often charge a small fortune based on how the consumer pays their bills, and that by making a simple change to their bill payment methods they could make a significant saving.
Companies such as energy suppliers, home phone providers, and broadband providers often make additional charges to those that do not pay by direct debit. Most consumers have a number of choices when it comes to making payments on bills, such as direct debit, standing order, cheque, or in person at banks and post offices.
For those that do not pay by standing orders some companies such as broadband and utility providers apply an addition monthly or quarterly charge, which can really bump up the cost of services for the customer. For example, Virgin Media, which provides phone, television, and broadband services, will charge consumers an extra five pounds a month for failing to pay by direct debit, which equates to £60 a year. In addition to this the company charges extra when customers ask for paper bills to be sent to them.
In order to save more money on their bills consumers should set up direct debits wherever possible, as otherwise they can end up being charged a small fortune on the cost of their bills. There is also another benefit to setting up a direct debit for a bill payment, and this is because it can reduce the chance s of making a missed or late payment, which can also incur charges when the payment is on something such as a credit card or loan. These missed or late payments can also result in the consumer’s credit rating being affected, which can make it more difficult to get finance in the future and makes it more expensive to get credit due to higher interest rates charged.
Tags: Direct debit, loan, payment, debit, Payment systems, finance, Standing order
UK’s south east is credit card central
October 24, 2007 by admin
Filed under News, News-Credit-Cards
The south east of Britain has been found to have the greatest number of credit card holders per capita than any other region.
A recent survey by the UK payments association, APACS, has revealed the payment habits of people and how they vary from region to region.
Results revealed that 75 per cent of adults in the south east have credit cards compared with the national total of 67 per cent.
Furthermore, it found, people in the north east are less likely to regularly use cheques than anywhere else while in the North West, people make more regular visits to cash machines, withdrawing £5,355 more than anywhere else in the UK.
Sandra Quinn, director of communications at APACS, said: “Different parts of Britain have long been associated with certain payment stereotypes – whether those are about being overly careful with spending or flash with the cash – and these guides – drawn from the UK’s ongoing largest study of payments behaviour – offer a revealing and interesting look behind the statistics.”
She added that although the majority of people are happy with the payment methods available, managing finances can be made easier and more convenient by “taking advantage” of the various options.
The regional comparisons were based on a survey of 4046 adults representing the most comprehensive ongoing survey of its kind.
