It's time to declutter your bank account
Can you remember the last time you went through your bank statement?
Have a look down the transactions looking at each standing order and direct debit. You will almost certainly have forgotten that you are paying some items. It’s often a forgotten gym membership or a magazine subscription.
There will be other Items where the payment amount is more than you expected to see.
It is surprising how much is being paid that we are unaware of until we set aside the time to do this exercise.
Cancelling standing orders is more straightforward because we originate the transfer. To cancel a direct debit you need to cancel via online banking or by Instructing your bank to cancel. It is also sensible to contact the direct debit receiving company and tell them.
There are a couple of things to consider when cancelling direct debits, the first is to check if there are any penalties for cancelling, most likely if you are still In contract. It may still be worth cancelling and paying the fee dependant on the figures. Secondly, once the company learns you want to cancel they may offer you a better contract. Again, you need to weigh up whether the new contract is worth it, given you are In the process of cancelling.