Bills can be hard to manage when you first leave home - you may have budgeted for the cost, but how exactly do you pay for them? We take a look at the best ways to pay bills and give tips on what to do if you’re struggling.

The main payment methods

You’re nearly always given a choice of how to pay regular bills such as gas, electricity, water and the TV licence. It’s in the interest of businesses to make paying bills as easy as possible for their customers. Depending on cost and convenience, ways to pay include:

Direct Debit – you allow the business to take cash from your bank account on a regular basis (usually monthly or quarterly). It can often help to spread the cost over the year, and many organisations offer discounts to people who pay with Direct Debit as they know they will be paid on time.

Phone – you can usually pay bills over the phone using a debit or credit card. Most customer phone numbers are free or local rate, but be careful of numbers that charge higher rates, as these charges can quickly mount up even if you’re only on the phone for a few minutes.
Internet banking – businesses often give their bank details so you can transfer the bill amount into their account online. If you pay this way, make sure to include your reference number so the company know where the money has come from.

By post – you can often send a cheque for the bill amount to the address provided by the business. Be aware that it can take up to five days for them to process the cheque and receive the money from your account.

Post Office – you can often pay a bill by cash or card at the Post Office. There can sometimes be a fee for using this service.

Prepayment meter – gas and electricity can be paid for by prepayment. This involves buying top-ups on a key or a card and inserting them into the gas or electricity meter. To ensure a supply of energy, there must always be enough credit on the meter. This can be a very expensive way of paying for energy, but it does have the benefit of allowing you to budget for what you use.

Once you’ve worked out the best way to pay your bills, read our guides to make sure you’re not paying too much.

Source : www.moneyadviceservice.org.uk