There are many ways companies can get us to part with our hard earned cash. Be wary of these following practices which can lose you money.
Loan Protection Payments
Banks often sell very expensive loan insurance schemes. You can end up paying 50% of the cost in insurance premiums. Often banks give the impression these very profitable insurance schemes are essential to get the loan. Be very wary, if you really want loan payment protection, it may be better to get some from another company.
Though oft repeated, always be wary of any email that tries to get your login details to your bank account. Scammers can give the impression they are your bank when actually they aren’t
Internet payment of Subscriptions by card
Recurring payments like magazine subscriptions, annual trip insurance, gym memberships etc are not covered by the save guards on debit cards or credit cards. even if you tell your bank to stop payment they wont! The supplier will have your full long security number and can take payment at will. It is then up to you to dispute or fight for refunds or cancellations.
The direct debit scheme has safe guards and you should try insisting that is the way you wish to pay.
An alternative is to use a prepaid credit card which won’t pay out if there are no funds (but beware this may mean you are in breach of contract)
Door Stop Energy Salesmen
Paying monthly is a common way of getting energy bills settled. A guesstimate of consumption is made and converted into a monthly cost. When someone calls at the door with the sales patter offering £10 per month or more saving if doesn’t mean they are cheaper.
Compare the unit costs – use a reputable web site for a guide to cost comparisons. If you do sign up you have 14 days to cancel so use the time to double check.
Once the deal is done unscrupulous suppliers are trying to increase the monthly payments immediately and by 30% in some instances! At best, this is to help their cash flow and at worst it is because they know you need to pay more.