|1.||Bills||2.||How to pay your bills||3.||How to set up a bank account|
|4.||How to set up a savings account||5.||Borrowing money||6.||Credit score|
|7.||How to budget and save||8.||Education financial support||9.||What to do if you're in trouble|
2. How Do You Pay Your Bills?
There are a few methods to make a payment; we have listed the main methods available.
A direct debit is when you let a company take the money you owe them out of your bank account directly. The company will always tell you how much they will take and if they are going to take more or less than the previous time.
Direct debits are for non-fixed amounts, meaning bills that are different every month, for example mobile phone bills.
If the company takes the wrong amount then your bank will give you your money back.
How to set up a Direct Debit
When you speak to companies (e.g. water, electricty, car insurance) either on the phone or online, you will be asked how you would like to pay. They will offer you the option to pay by direct debit. You have to agree and they will ask for your account number and sort code. Please be aware some companies may run a credit check.
Though the easiest way to make sure your bills are paid on time, if you don't have the money in your account on the date that the direct debit is due then you will be charged by the bank and sometimes by the company requesting the money.
If your bill is the same every month then you can set up a standing order. This will transfer the same amount of money each time, but if the amount changes then it's up to you to change your standing order.
How to set up a Standing Order
A standing order can only be created by you. You can either create one at your bank branch, via your online banking account, or you can do it over the phone to your bank.
For More Information on Standing Orders and Direct Debits
If it is just a one-off payment or it could be for someone like a family member, friends or a company, transferring money directly is a useful option.
You can transfer money by:
- Calling your bank;
- Over the counter at your local branch;
- Online via your banks webpage or download a banking app.
To Transfer money you will need:
- The person's name that you're transferring the money to;
- Their six digit sort code - this is on the front of the card and looks like xx-xx-xx;
- Their eight digit account code - this is on the front of the card or on your bank statement and looks like xxxxxxxx;
- The date you want this money to be transferred;
- A transfer reference (you can put your name here but usually if they want something in the reference box they'll ask for it – landlords normally ask for your name and house/room number);
- Your own details:
- The card number, which is 16 digits and written along the front of your card like xxxx xxxx xxxx xxxx;
- Your 3 digit security code (these are the last three numbers on the back of your card – written on the white strip you sign);
- Your expiry date (this is usually above your account code (the eight digit one), and written like xx/xx)
It normally takes up to two hours for the money to be transferred.
Always double check the person's details! Have them repeat them back to you. Once your money is out of your account, and it's not someone else's fault, then it's gone.