Why you should pay annually not monthly?
Some monthly payments will have an added fee, however, if you pay upfront you’ll receive discount or an incentive. You ultimately pay less upfront than you would if you pay monthly.
Benefits of paying annually
Your provider is likely see you as a loyal customer due to the fact that you have committed to them for a year, paying upfront.
Rest assured once you have paid up front, it is more convenient as it requires only one invoice per year.
Annual billing is easier to manage.
Discounts are always applied when paying upfront.
Low accountancy costs
Reduces your monthly accounting costs as you don’t need to facilitate monthly payments.
Disadvantages of paying monthly
More paperwork to complete, especially if your provider needs to check your credit score.
Risk of going into overdraft
If you choose to pay monthly via direct debit, you have to ensure that there are sufficient funds in your account to cover the payment - otherwise it may lead to an overdraft.
Your credit score could be at risk
If you decide to change your bank account whilst paying monthly, you have to ensure your direct debit from your old bank account changes over to your new bank account - If you fail to do this, it can cause serious implications on your credit score.
Paying monthly overall costs more than what you would pay annually.