Caporegime
Like...£800 at least.
If you are basically using up your entire DD amount in the depths of winter you can probably knock 1/3rd off it and still end up not having to worry about it not averaging out over the year.
Energy Prices (Strictly NO referrals!)
- Thread starter DXP55
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Like...£800 at least.
If you are basically using up your entire DD amount in the depths of winter you can probably knock 1/3rd off it and still end up not having to worry about it not averaging out over the year.
Soldato
Afaik fixed DD is pretty much the default payment method for most people isn't it?
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Associate
Mine defaulted to variable payments via direct debit.
Soldato
It is.
The odd thing is it was one of the "challenger enhancements" that came about when the markets were opened up.
Many people used to complain about the size of the winter bills. So they came up with the equal amounts thing.
People who suck at budgeting and/or money control generally far prefer equal amounts every month.
Soldato
You can preach this but in my experience most people don't listen, and instead prefer to moan about suppliers changing DD rates on them without agreement.
Whole/Variable DD is the best way.
Unless you can rinse it in your favour
. I took a £1k interest free loan from Eon when I first moved in.
Soldato
Unless you can rinse it in your favour
Easier ways of getting that though, like getting an interest free credit card, spending on that, and putting money you would spend into savings instead.
I don't tend to bother though for the sake of say £1K, it's not really enough to make much of a difference, even 5% on that in a year is only £50, not terrible, but juggling accounts and credit cards and things for the sake of £50 isn't usually worth the hassle!
What if I just enjoy having a fixed cost each month? Doesn't mean I have money issues. I'm capable of making a spreadsheet using my actual past usage and work out costs for the year.
For sure - but not everyone is building big credit balances, or can afford the cashflow of big swings because of winter usage.Easier ways of getting that though, like getting an interest free credit card, spending on that, and putting money you would spend into savings instead.
I don't tend to bother though for the sake of say £1K, it's not really enough to make much of a difference, even 5% on that in a year is only £50, not terrible, but juggling accounts and credit cards and things for the sake of £50 isn't usually worth the hassle!
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Soldato
If you prefer estimated DD then you have to deal with the issues that comes with, which is having to try and get the DD set to something you are happy with.
The supplier may or may not agree with your assessment of this, so there is a headache involved in sorting it out if it's not to your liking.
Lots of people complain about this, but then won't move to actual DD instead, but it's just part and parcel of trying to have estimated billing.
If you have the capital to absorb the seasonal changes, actual DD is objectively better, and you're never sat in a massive credit with the supplier.
The supplier may or may not agree with your assessment of this, so there is a headache involved in sorting it out if it's not to your liking.
Lots of people complain about this, but then won't move to actual DD instead, but it's just part and parcel of trying to have estimated billing.
If you have the capital to absorb the seasonal changes, actual DD is objectively better, and you're never sat in a massive credit with the supplier.
Tried to convince anyone I talked with while I was working for energy company's (call centre) to switch to whole amount if they are okay with variable bills as you never pay too much or too little.
But it seems most are perfectly content having there money in a businesses account instead of their own. My mam and dad tried whole amount for a few months but said they didn't like it
Because cashflow and predictable bills are often priorities for the vast majority.Tried to convince anyone I talked with while I was working for energy company's (call centre) to switch to whole amount if they are okay with variable bills as you never pay too much or too little.
But it seems most are perfectly content having there money in a businesses account instead of their own. My mam and dad tried whole amount for a few months but said they didn't like it
Yeah I understand that but the majority of people I talked with cannot afford it anyway. Always had complaints saying they are in debt because the fixed payments where not enough after the winter. I think it's a horrible system as it can cause massive debt problems and the customer is non the wiser until the bill comes in and they need to materialise £200+ from nowhere.
At least with variable you always know where you stand.
Then again most people don't pay any attention to usage and frivolously use electric and gas with no regard to the costs. Then complain that the bills are so high.
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Soldato
Pro-tip btw, but at least with Octopus, I can "top-up" my account with one off payments from my Amex cashback credit card, so I can get cashback on adding balance to my energy account.
Whilst DD is cool and all and works well, I don't get cashback on that, so if it's near my usual billing date and I have a balance to clear, I can add some capital and get instant cashback.
I get 0.75% on all purchases, so it's superior on an annualised basis vs savings at say a 5% rate even.
Whilst DD is cool and all and works well, I don't get cashback on that, so if it's near my usual billing date and I have a balance to clear, I can add some capital and get instant cashback.
I get 0.75% on all purchases, so it's superior on an annualised basis vs savings at say a 5% rate even.
You gave me grief for making "50 quid" out of EON but then you suggest making 0.75% on a top-up!!!
(that is a genius tip though thank you).
Well this is a huge oxymoron
if I know what my annual usage will be I can divide that over 12 months and know exactly what the direct debit will be.EDIT: In fact, I'll have to perjure myself here and say even with my costs based on usage it looks like I'm farrrrr too much in credit with Octopus at the moment. Credit level isn't going down even in the winter months where I've been more generous with heating usage than last year
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Yeah but your a compitent person (guessing haha) most people are ignorant to their usage.Well this is a huge oxymoron