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Guide · About 5 minutes to read

Should I pay my bills by Direct Debit?

Direct Debit is one way to pay regular bills. It suits some people and not others. Here are both sides, so you can decide what is right for you.

The basics

What is a Direct Debit?

  1. You agree it with the company Usually by phone, on a paper form or on their website. They ask for your bank details.
  2. They take the bill from your bank On the same day each month, or whenever the bill is due.
  3. You can see and stop it Your bank lists every Direct Debit, and you can cancel any of them.

Both sides

The good points, and the things to watch

Good points

  • Bills are paid on time You do not have to remember, so you avoid late payment charges.
  • Nothing to do each month No websites, apps or queues once it is set up.
  • It can cost less Some companies, especially energy suppliers, charge less if you pay this way.
  • You are protected The Direct Debit Guarantee means your bank must refund any mistake straight away.
  • You can stop it You can cancel at any time by contacting your bank.

Things to watch

  • Money goes out on its own If there is not enough in your account, the payment may fail and you could be charged.
  • The amount can change Bills like energy can go up. The company must tell you first, so read their letters.
  • It is easy to lose track Check your bank statement now and then to see what is going out.
  • Cancelling does not cancel the bill If you stop a Direct Debit, you still owe the money. Tell the company first.

Your choice

Is it right for me?

There is no right answer. Many people use Direct Debit for some bills and pay others themselves.

Direct Debit might suit you if…

  • Your money comes in on about the same day each month
  • You often forget when bills are due
  • You would rather not pay online or by phone each month

You might prefer paying yourself if…

  • Your income changes from month to month
  • You like to choose exactly when money leaves your account
  • Your account is often close to empty

Other options

Other ways to pay your bills

  • Pay online yourself

    Use the company’s website or app when the bill arrives.

    Practise paying a bill

  • Standing order

    You tell your bank to send a fixed amount on a set day. Only you can change it.

  • By phone

    Ring the number on your bill and pay with your bank card.

  • In person

    Some bills can be paid with cash at a Post Office or PayPoint shop.

Free help, if you want it

These services are free and on your side. They can help you choose how to pay, or sort out a bill.