In a post in March, I gave the reasons why it is not always the best idea to pay by Direct Debit.
The Telegraph has done some research into the things you should and shouldn’t use Direct Debits for. The article makes the point that there are certain things that you should definitely spread your payments for, and there are others that are cheaper to pay for upfront.
Do Pay By Direct Debit:
Magazines, energy bills, council tax, credit cards, Child Trust Funds.
Don’t Pay By Direct Debit:
Home insurance, car insurance, gym membership, home phone, broadband.
Of course, one of the major benefits of Direct Debits is the fact you can split a large payment into manageable chunks, and many people would argue that this is something worth paying a little bit more for.