Over one in three Brits who use Direct Debit to manage their bills are unaware of exactly how much money leaves their account every month.
According to research by an independent price comparison website, many people across the country could be wasting large amounts of money by paying for services they no longer use.
The research found that 95% of current account holders use Direct Debit to pay for bills, goods and other services. The average monthly amount going out of a bank account through Direct Debt is around £297, this figure rose to £500 for a quarter of those on automatic payments.
When questioned about the last time they checked their Direct Debit outgoings, the research found that one in ten members of the public noticed a Direct Debit payment they had forgotten about.
Kevin Mountford, Head of Banking at MoneySupermarket said; “Using Direct Debits to set up regular payment for household bills, subscriptions and memberships has become the norm for the majority of bank account holders in the UK. However, with finances being squeezed by the rising cost of living it’s really important to check all your outgoings and make sure you are not paying for products or services you no longer use.
ìHaving a clear idea of what is coming in and going out of your account each month is absolutely crucial so it’s worth spending five minutes looking at statements and investigating any mysterious payments.
ìThings like gym memberships or annual subscriptions can easily be forgotten and overlooking Direct Debits, which are no longer needed, could be a costly exercise. However, don’t just cancel a Direct Debit without speaking to your provider first, otherwise you may be charged a fee by your bank if the provider tries to claim the money.
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