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Dec 2023
9:21am, 14 Dec 2023
21,191 posts
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rf_fozzy
I still don't understand why you want your energy retailer to act as your bank?
£600 is a huge amount of money to give them
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Dec 2023
10:01am, 14 Dec 2023
9,966 posts
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Northern Exile
Provocative as ever eh Fozzy?
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Dec 2023
10:07am, 14 Dec 2023
48,884 posts
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Merry Christmas and Happy NewG(rrr)
No interest in my main bank account fozzy, and ... laziness! I won't try and justify it any other way. If you have the time and inclination, moving your money to pay only when required as you do is the best way. I concede!  G
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Dec 2023
10:19am, 14 Dec 2023
2,836 posts
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Muttley
The way to do it is to maintain a steady, ie predictable, direct debit to be in surplus going into winter and in debit going into spring, so the bank comparison works both ways.
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Dec 2023
12:29pm, 14 Dec 2023
21,192 posts
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rf_fozzy
I genuinely don't understand why anyone lets an energy retailer take money off them for something in the future. Paying bills by DD in arrears isn't any more expensive.
It absolutely baffles me that people do it, when to me to set up an SO to a savings account and just move it back as required is just as easy.
Having a 'surplus' of credit with the energy retailer seems a false argument to me. Just have that surplus in your own account instead?
I'm sorry to go on about it, but there's been 2 instances in the couple of weeks where people are in credit with energy retailers with over £500. And I just don't understand why! If it were the other way round and it were £500 of debts that had been built up (unless due to genuine cash flow issues), people would be looking at that and saying you'd done something silly.
I recognise that some people have problems budgeting and so paying a monthly amount might work out better for them in the long run, but for the vast majority, particularly if you are posting on this thread, then I suspect that's not true.
Hence I don't understand it.
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Dec 2023
12:31pm, 14 Dec 2023
21,193 posts
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rf_fozzy
Maybe I'm unusual in that I check all my accounts at least monthly and my current account at least once a week.
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Dec 2023
12:39pm, 14 Dec 2023
26,082 posts
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Bazoaxe
fozzy, for me its simple.
I like regular monthly payments so I know my ins and outs and dont have any big bills that might catch me out. I also simply dont have time to prioritise the movement of money to manage this that you do. Maybe when retired I might have that time, but right now work, family and a little bit of leisure time is prioritised
I dont like having such a big credit balance, although when prices were high, I was OK as I didnt know where prices were going and I liked having some money in there to cover the costs. I am now taking steps to get the balance down.
I could ask for money back, but when I last did that it created unintended consequences which resulted in me falling behind and payments being increased.
You must accept that not everyone lives in rf fozzy world and have different ways of doing things that we are all comfortable with
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Dec 2023
12:49pm, 14 Dec 2023
16,095 posts
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jda
If I was down to my last £500 I’d probably agree with you fozzy. But I’m not so I don’t. At 5% interest there are many much easier ways to earn a lot more than 25 quid per year (including managing my more significant finances better).
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Dec 2023
12:53pm, 14 Dec 2023
8,487 posts
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Merry Fizzmas :-)
And whilst the numbers don’t cancel out, I spend part of the year in credit and part in debt. For a few pounds a year, I just can’t be bothered. I don’t believe our credit has ever got as high as £500, maybe it does if you add gas and electricity together.
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Dec 2023
1:13pm, 14 Dec 2023
21,194 posts
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rf_fozzy
But you see, Baz, that's precisely the reason(s) I use the method I do.
I know roughly how much gas, electricity, water, etc cost per year. I then budget so much per month and that goes via SO into an account. That took 5mins to set up and I never have to do it again. It just needs adjusting if prices go up, but I've not had to yet.
So instead of 5x DDs coming out, I have 1 SO that covers everything. But the same amount is set aside.
When the bill comes, if necessary I transfer that back to my current account (takes 1min 4x per year) and it goes out by DD on the date they set.
But I really don't understand why it's more comfortable for an energy retailer to manage your money and trust their crystal ball gazing. The one time I did DD in advance all they did is keep putting the DD up, I had no control and it's then a significant amount of time and effort to get that money back.
And to me £500 is a lot of money and I suspect it is to most people. It would affect me greatly if my energy retailer had £500 of my cash in their bank account.
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