Mortgages remain by far the most expensive use of direct debits in the UK, with just over £500 million a year spent on repayments through the automatic system.
Figures from the Halifax bank show that direct debits are now the most popular method for settling large bills, with many businesses offering incentives for customers utilising the service, which provides a more constant, assured revenue stream for organisations.
Credit card bills were the second most expensive expenditure for Britons at just under £300 million and insurance was third at around £180 million.
Anthony Warrington, director of Halifax current accounts, said: “Most customers appreciate the convenience and understand that paying regular bills by direct debit means it is easy for them to see what disposable income is left to spend after all other commitments have been met.”
Mr Warrington added that the simplicity and security that the system provides is one of the main drivers behind its considerable popularity, which is expected to increase in the coming years.
