I’ve saved £1,000 a year thanks to a handy Martin Lewis tip  – see if you can too with a three-second check

A MARTIN Lewis fan has revealed how she saved £1,000 a year thanks to a simple tip.

It takes just seconds to make the check and it could save you some serious cash.

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The money-saving guru has urged people to give their regular payments “the once over.”

Checking your direct debits could highlight where you are paying for things you do not need.

He said payments “drip out of our accounts” and most of the time we don’t even realise – which is handy for bills.

But sometimes, outgoing payments could hit a fault and if you’re not checking you could be losing out massively.

He gave one example of someone who had been paying £16 a month in repair insurance for two white goods that they no longer have.

He said: “Over six years, that’s £1,200 down the pan – think what you could do with that!”

One Martin Lewis fan wrote to him recently saying that they had managed to save themselves £1,000 a year after following his advice.

Over six years, that’s £1,200 down the pan!

Martin Lewis

The success of the week was shared in the recent MSE newsletter.

Sarah wrote: “I used to work for a band and assumed no savings could be made but the review was well worth it.

“Thank you for your help and your app, it is much appreciated.”

What should I look out for?

Setting up automatic payments can make your life easier as it means you don’t have to think about remembering to make your monthly payments.

However, if you don’t keep an eye on things you could end up paying for stuff that you don’t need.

There are three types of regular payments that you should keep any eye on, and we have listed them below.

Direct Debits

This is where you have an agreement with a company, such as an energy provider or bank loan.

They are usually for a fixed amount and are taken from your account regularly and on a set date.

Standing orders

These are payments for a fixed amount that you have set up yourself via your bank.

These can be payments to a landlord for example, or they can also be used to move money to another account such as your savings account.

Recurring payments

Recurring payments are also called Continuous payment authority (CPA).

These are payments you might make to a gym or streaming services such as Netflix, for example.

It means you have given the company authorisation to debit your account on a regular basis.

When a payment like this is set up it means that the company could take money whenever it believes you owe them, as they have already been granted permission.

However, most reputable companies won’t do this – but it is something to keep any eye out for.

Setting up a CPA is different as the company needs your long card number rather than your bank details.

Martin warns that you should be sure to check before you cancel anything and make sure that you won’t incur fees for doing so.

For example, you could be charged if you are still in contract and you cancel a direct debit, so check your paperwork carefully.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected].

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

This post first appeared on thesun.co.uk