IT is extremely important in these days of economic disaster that a person’s financial situation is kept under strict supervision.

For example, every consumer should give due consideration about which method of payment to use when settling their utility bills — be it quarterly cheque, direct debit or pre-payment meter.

It should be realised that much pressure is used by suppliers to choose the direct debit system.

This means that a monthly instalment is fixed and extracted from the customer’s account and this is fixed “unilaterally”, mostly high, so that a considerable balance is accumulated by the supplier, which can be invested with big rates of interest.

This is done at the expense of the customers, who lose the benefit of it for a long period.

Direct debits are also a big asset to the suppliers in maximising the cash flow, which can be better forecasted.

Conversely, the customer has lost the use of his/her money for a long period, which would not be the case if paid by quarterly cheque.

Over the years, when choosing the best option for me, I have used the following motto: “If it is good for the services supply, it is probably bad for me”.

Derek Ryder Bury