Financial expert Martin Lewis has warned Brits they should check their bank accounts for payments they don’t need or have forgotten about to cut costs.
The Money Saving Expert explained that knowing the difference between outgoing payment types could save you cold hard cash.
You may be paying out for things you never use like TV or music streaming services, book subscriptions, gym memberships and even old insurance policies.
Martin said that people who don’t audit their finances are losing money by paying for things they’ve forgotten about.
He explained that there are three common payment types: Direct Debit, standing order and recurring payments.
He added that people didn’t know their rights when it came to be cancelling which could save them thousands each year, reports Birmingham Live.
Martin said on The Martin Lewis Money Show: "A direct debit is when you give your sort code and your account number and they take the money each month.
"A standing order is when you set it up yourself to make a regular payment each month, quarterly or whatever.
"A recurring payment – this is crucial – is when you give the long number on your card. A credit card or a debit card.
"Then they can take money from you each month. You have far less rights with that one.
“You used to not be able to cancel it without contacting the company.”
He continued: "You can cancel it now. So, if you want to get in touch and cancel it, contact your bank.
“If they say they cannot cancel it, they can.
"And they owe you the money. You can go to the Ombudsman."
So, he advises that we all go thorough our bank statements and find the payments we do not need to be paying.
Direct Debits are protected by the Direct Debit Guarantee and are set up using your sort code.
You can cancel them on the phone, online or in your bank.
Standing orders are set up by you and can be cancelled for free at anytime.
Recurring payments are more complicated to pay and you can spot them sometimes if there’s a regular outgoing to a company you’ve never heard of.
To cancel, it is best to contact the company taking the payment first and ask to stop.
Then, if it refuses, you can also contact your bank or card provider and tell it to cancel it.
Banks must cancel a recurring payment when asked, according to the Financial Conduct Authority.
But, you should check if you’re still in contact with a company or using their service before cancelling.
If you are in contact with them check if stopping the regular payment is a financial breach which could land you with a penalty.
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