Checking every payment can save a load of cash
If you’re worried about bills in the year ahead, you are not alone. Saving cash is going to be a priority for us all in 2022.
I’ve received many questions about cancelling subscriptions and claiming back cash. To prove the point, I recently went through my finances and saved more than £1,000 by cancelling the things I don’t use or need. So here are my tips on how to save a packet!
HOW TO GET STARTED
Lurking in your account are countless payments that you might have forgotten or never authorised a business to take in the first place. Finding them isn’t as simple as it should be though.
Don’t just check your direct debits and standing orders. Most businesses debit you using a ‘continuous payment authority’ or CPA. These don’t show up on your regular payment list but can be used in the same way to debit you basis monthly or annually.
Don’t just check your bank accounts. CPAs are loitering about on your credit card, on e-payment systems like PayPal or even on your mobile phone bill!
SUBSCRIPTIONS
Subscriptions and membership services are the richest source for refunds and money saving. Millions sign up for everything from online magazine subscriptions to premium services on dating websites – and then promptly forget about them.
What’s more, because these payments can easily be missed on your statements, you probably don’t realise how many regular subscriptions you’re paying for.
Start by going back a year and one month, through each card, account and bill, which will help you spot monthly and annual payments.
Cancelling is easy. You can usually do it through your bank or card provider. I’d email the business too though, if possible, so you have a record of the cancellation in case there’s a problem.
SUBSCRIPTION TRAPS
If you didn’t authorise payments, weren’t told you were going to be debited or you think you’ve been scammed, your bank should cancel the debit right away – and you might even get a refund.
HOW ARE BUSINESSES DEBITING YOU WITHOUT PERMISSION?
You may have signed up to a free trial and forgotten to cancel or tried out a service, but you simply don’t use it.
If you are suddenly being charged for poor value products you didn’t order – or you aren’t even getting anything for your money, it’s likely you’re in a ‘subscription trap’.
It’s hard to contact these businesses – they’re often scams or based abroad (or both). Just tell your bank to cancel and claim back your cash.
PROPER CONTRACTS
Some contracts have significant penalties for pulling out mid-term, with broadband and mobile phones being the biggest offenders. Insurance contracts also catch people by surprise as they are an annual contract where there’s one price each year that is split into twelve chunks.
No-one really gets why this is, but it does mean that you’ll have to pay a variable fee to bail early. Beat this by saving the renewal dates in your diary a month in advance so you’ve got time to shop around and jump ship.
However, if you’ve been overcharged by a business as a result of staying loyal, compare your current payments to what you’d be charged as a new customer. You may be able to claim back quite a bit of cash.
DUPLICATE PAYMENTS
There are some services we use regularly – but for some reason end up paying multiple businesses for basically the same thing.
The most common are cloud storage, streaming services, antivirus software, obsolete insurance policies, apps and gaming services. You can save hundreds of pounds just by sticking to one service and cancelling the rest.
If you’re overpaying and the firm won’t play ball, Resolver can help for free. Get in touch at resolver.co.uk