Wednesday, 5 March 2014

Forgotten Direct Debits Are Costing Us A Fortune!

A recent online money advice article highlighted the issues of forgotten direct debits. It seems that many people often forget about small seemingly insignificant amounts of money that are coming out of their accounts. And it is something we have all done. We may have forgotten a subscription for a magazine or an additional television channel, or subscriptions to mobile apps, online games or even online services. When the amount is just a pound or two it can be easy to forget about it and not notice.

The problem is that all these little direct debits could result in a significant amount of money over a year. And if they are payments going to companies we no longer use, or don’t need, then the money will be better spent elsewhere, or remaining in your pocket.

It’s already a well-known fact that many people do not even look closely at their bank statements. Instead they will simple look at the bottom line and check the last few transactions, or any payments they were expecting.

Our advice is to regular check your bank statement every month. It’s also a good idea to go through your direct debit list and cancel any direct debits that are no longer in use every six months or so. If you start using the company again, you will need to set up another anyway.

In addition, check you iTunes account for recurring payments to apps, and your credit card statement for any payments coming off each month. These may be payments that are for websites and other services that you don’t need any more or may have forgotten about.

If you want to keep the services then continue to pay for them. The point is, why pay companies money when you are not using their products or services? Instead, carefully check what is being taken out of your account and by whom, and if there is any unnecessary expenditure there, you can address it and save the money or use it elsewhere.


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