Brits ‘Should Take Steps To Avoid Payment Charges’
Changing the way they receive their telephone bills could see Britons save many millions of pounds, it has been suggested.
Research carried out by uSwitch reveals that by switching to a different method of payment consumers could be some 237 million pounds better off each year. According to the price comparison website, receiving bills via emails instead of the traditional post could save people 162 million pounds, while choosing to pay through direct debit may see consumers become better off to the tune of 75 million pounds. Overall, it was indicated that some 13 million homeowners are paying “over the odds” on their home phone bills.
Further findings from the firm also showed that by switching their payment methods to direct debit an estimated 400,000 Virgin Media customers could save 60 pounds each. Meanwhile, a fifth of those on a contract with BT were shown to currently pay for their service by a method which is not direct debit. The figure comes despite the firm announcing last spring that those who choose to pay by cheque, cash and credit or debit card would be hit with an 18 pounds annual charge.
By switching to a more competitive payment method, consumers could find that not only are they able to manage their utility bills with greater ease but are also able to get to grips with other financial constraints such as personal loans, credit and store cards and mortgage or rent costs.
In addition, the uSwitch study revealed that Toucan customers face a 12 pounds annual charge for receiving bills via the post. Meanwhile it was revealed that more than half (59 per cent) of BT’s clientele are to be forced to shell out an extra 15 pounds to receive paper statements from April.
Steve Weller, head of communications services for the price comparison website, said: “It would be interesting to see whether the costs incurred by the companies for providing paper billing are proportionate to the excessive charges being levied on customers. While there are clear environmental benefits to receiving bills electronically, only half of the UK has broadband at home and those that don’t are likely to rely on the postal service to receive their bills. Our advice to the 13 million customers being stung by these fees is to compare prices among all the providers to find the best deal for their needs - some companies will still post bills for free.”
Mr Weller went on to point out that as some companies implement charges as high as 60 pounds per year, people should take the time to think about how they wish to pay their bills, whether this is by a cheque, cash or plastic card.
Those looking to further reduce financial pressures, however, may wish to apply for a debt consolidation loan. In taking out a loan, consumers may be able to merge a number of demands on their spending into a single low-cost repayment. This may prove to be of assistance to those struggling with increasing utility bills, after uSwitch recently reported that E.ON has put up its gas and electricity prices by 15 and 9.7 per cent respectively. Such a move, it claimed, would see the average dual fuel customer see their bills rise to 999 pounds. Ann Robinson, director of consumer policy for the price comparison website, claimed that the news is likely to have come as “an inflation busting price hike” for the firm’s consumers.
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