Can't afford direct debit

[Hdkatznahtw125sgh]

Hi

Looking for some advice. I'm with Scottish power (I've just moved house) the first direct debit is due tomorrow and it's 1) way higher than my usage and 2) way higher than I can afford. (even with my small overdraft)

I have already applied for a 0% credit card which I will be looking to cancel at the earliest opportunity and have changed my DD date for the next month onwards so it will fall after pay day.

The DD is for 168, my usage this month is 36, I can afford 150. I get paid on Wednesday.

I have never been in this situation before. I've contacted Scottish power to discuss it.

Any advice on what I can do. I previously had quarterly billing and have incredibly low usage (last year £200 on gas and £360 electric across the whole year)

Thanks

Ring them and say you can pay £150 and add the £18 to your next payment? Better than paying nothing at all.

Get a reward credit card, you can make money on every transaction. However, it’s not interest free - if you miss payment, they add interest on.

I’ve already made £20

I'm on a chat with them now so will suggest this

You could just tell then you aren’t willing to have a direct debit at that level so cancel it and pay actual usage: then set up the direct debit when you have shown lower usage.

That said whenever I have said I want to lower my DD a bit the energy companies have always been fine with it unless it put me in debt.

With cost of living crisis and other issues, you’re paying more than half so should be fine. They need to be little understanding

If it’s due tomorrow it’s unlikely they’ll be able to change anything in time - if you can’t afford it, move the money out of the account the DD is due to come out of.

I've been very lucky and forgot my friend owed me money which they just transferred me which has taken me into the green so I can afford the payment tomorrow. However it's given me a massive wake up call. The credit card I signed up for is a rewards one. I've changed the DD date to after pay day for the next payments and hope my DD will reduce to a better number as they see my usage. I have money in an ISA which I've just applied to withdraw too as I need to be in control first before saving.

Thanks

Cancel the direct debit, submit meter reads and pay for your usage so there's no debt. You can then negotiate a new dd if you wish without the time pressure of the bill coming out tomorrow - personally I just pay for the usage each month

Oh amazing, glad it worked out OP. Reward credit card is the best!

Any advice on what I can do. I previously had quarterly billing and have incredibly low usage (last year £200 on gas and £360 electric across the whole year)
That is very low, mine is about £1000 a year total, so it was £600 with the discount. Is the property comparable? Did you just not use heating or did you have alternative heating? Was this after taking off the £400?.

I'm guessing the dd is an overestimate based on the previous occupants. I'd phone up, tell them what you can pay and you may be able to further reduce this going forward after more meter readings.

Sorry cross post with your update but if things are tight I'd not be paying that if it's a huge over estimation. Better the extra in your pocket than theirs

Can you change the payment (for the future) to paying the bill amount rather than a set amount?

I'm with Shell, monthly bills - based on readings, or estimates if I don't submit in time - and direct debit payment is the amount of the monthly bill.

You can switch to a variable dd instead of a fixed average one, you pay more with quarterly billing.

https://www.scottishpower.co.uk/small-business/customer-services/payments-pricing

They offer monthly variable direct debit where you pay for what you've used as well as a direct debit where you pay the same amount each month.

Another monthly variable direct debit here with Shell. I set the amount which I pay into an account then that sits in credit which is used over winter for the higher bills or to buy logs and kindling. Still get the direct debit benefits but I control the payments.

Sorry for the late reply. I decided to go and do a load of returns I’d been needing to do for a while after the kick received this morning. Obviously they'll take a few days to process but it's nearly £300 and counting (moved house so lots of things that weren't quite right).

@Okunevo I use very little heating, in the coldest months I had it on a tiny amount. I have a biofuel fire I believe it's called (and have one in new house) which I would never have installed but means using even less gas. I get the fuel for very cheap. Shower is electric.

Scottish power never got back to me, they're really busy apparently because of tomorrow being a common pay day which is quite sad as clearly others struggling. However, in app I have reduced my DD to 150 (lowest it will allow) and changed the payment day to after pay day. I'd hope after this payment the smart meter etc which all catch up and I can keep reducing the DD. I don't mind being in credit but I'm not over paying 50-100 for a whole year.

Glad you got it sorted OP

This.
We submit the reading monthly and pay around £100 in the account . By the time we get the quarterly bill there is enough money (or close to) in the account for the bill to be paid. These DD are putting a lot of people in financial stress and there is no need for it!

We have a smart meter, no DD, just go to the Eon Next app on the 1st of every month and pay our exact usage. Much prefer this to overpaying on DDs. We ended up with hundreds in credit at our old place with British Gas