Direct debit ‘could help’ indebted people

Paying bills by direct debt as opposed to cash or cheque could help those experiencing debt management problems save some money each month, it has been suggested – which could potentially free up funds to pay back debts.

Confused.com’s head of utilities Gareth Kloet remarked that customers “should vote with their feet” when it comes to high energy costs, which would help “force the big six to review their prices”.

He went on to say that setting up direct debits for incoming bills may help people save, as paying by other means could mean an increased expenditure of up to 15 per cent each year.

Mr Kloet also stated that, for those wanting to save as much money as possible, it might be advisable to opt for a smaller provider.

Last month, Confused.com’s head of home insurance Darren Black observed that people should seek out the best deals on car and home insurance as loyalty to services does not always pay dividends.

By Sarah Adie