Having had yet another huge bust up with the bank on the phone due to total incompetence on their part and added to that their incredibly slow rectification procedures that are heavily weighted in their own favour, and being totally fed up with yet again being charged for banking services i have not signed up for or even used, i decided to see if i could live without banks for a while and live using cash only. Still fuming, I took myself to the local Staples office supplies store and purchased a typical petty cash box, Then paid a visit to the bank, and withdrew all my money from the current account barring £10 to keep the account open for the purposes of receiving wages which i have no chance of getting in cash.
Once home i deposited the cash in the tin and the Cash\debit cards, Cheque book and Credit Card in a drawer.
1st Challenge: Utilities
I phoned the utilities (gas, electric and water)and said i was no longer paying by direct debit and to send me a bill with a payment slip attached. After quite a bit of grumbling on their parts that got arranged easily enough.
2nd Challenge: Cable Company
I phoned the cable company and said i wished to cancel the direct debit and to please send me a bill each month. The response was "ok, BUT we WILL charge you extra for non-direct debit payments" so i said "No problem, just cancel the subscriptions for the TV, Internet and Phone please".
I was then hastily transferred to the complaints department who then decided that i was a 'Loyal Customer' and not only cancelled out the extra charge for non-direct debit payments but went right ahead and heavily discounted the Internet and TV as well.
3rd Challenge: The Mortgage
Unfortunately no real option here, But i did find out that if the bank the mortgage is with, had a branch in town that it could also be paid cash over the counter.
4th Challenge: The Credit Card Bill
Ok the credit card bill proved a bit more tricky, mainly because the payment slip is a bank giro, which can only be paid into a bank unlike the rest that can be done at payzone/paypoint outlets or the Post Office all of which are nearby (note to self: Post office charges for paying bills) But given that i need to go into town and withdraw my wages each month, it can be done then.
5th challenge: Mobile Phone Bill
Many mobile phone companies will only bill direct to a debit card or with direct debit. Mine included! Given that my phone was out of its 12 month contract and i rarely use it these days, i simply cancelled the contract, went online and got a free Pay-As-You-Go sim card.
6th Challenge: Maintain ability to shop online.
This is easier than it sounds actually. Having an online retail site, the site uses Paypal to process payments. Paypal have their own pre-paid credit card which if you have a Paypal account can be topped up from your Paypal Account or at a Post Office or Paypoint outlet with cash.
So after 3 months was it worth it?
Absolutely... although i will say the level of success will depend largely on anyones lifestyle. For the impulsive shopper or even compulsive shopper, this i would imagine could easily be a living hell.
Apart from the obvious savings with the cable company and mobile phone subscriptions, My credit card balance is significantly lower, I spend less on stupid impulsive purchases on the debit card and i am more acutly aware of the 'real' value of money, and overall i'm far better off.
Have i changed my lifestyle to achieve this? NO absolutely not! i still go to the pub on a friday night but instead of paying £1.60 for the convienience of using the ATM on the way to the pub, i simply take the cash with me. I always carry £20-30 in cash in my wallet the same as i always have done along with the pre-paid card.
If i could get my wages in cash i definately would.
In fact the only person who isnt happy is the bank manager!
There is actually a lot to be said for leaving debit cards in the draw if you have the fore thought to think about where you are going and how much cash you want to take.
Even if you dont want to ditch banks, Pre-paid credit cards are an outstanding idea for online shopping at the very least. Gone are the days of worrying about how secure your card details are and in turn the rest of your money!
Conclusion:
Banks are sitting pretty, all the time they have your money, they are making money on it, All the local cash machines here are now 'convience' machines which charge you withdraw your money. If they 'accidently' bill you for additional services and account upgrades like they have me on average of once a year they get more of your cash, and if you notice the 'mistake' it takes forever to get it rectified and the money returned. Top that with if, god forbid those 'accidental' charges take you into the red like it did me last year, guess what? you get hit with penalty charges and adverse credit ratings.. which YOU have to sort out with the credit reference agencies.
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Contributor's Note
The above is my account of how i have partially ditched Banks and their services. It does not constitute financial advice in any way and anyone who tries it should consider their financial obligations first.
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