If you own a credit card or you have a current bank account, you may want to ponder using Direct Debit to pay your bills on time. This payment system is a very simple, safe, and convenient method of making periodical payments through your bank account. You can now easily pay your bills and make regular payments to other business establishments without the need to go to the establishment physically. This system also makes it simple for you to manage your money.
The Direct Debit payment system is a transfer that is typically carried out periodically through the banking system. This is a payment system wherein the payments are collected directly from either your bank accounts. You will only set up this payment system once, giving instructions to authorise certain organisations and business establishments to collect certain amounts of money at certain dates. After doing so, the money will then be collected automatically out of your account at the specified dates.
Not Enough Money In The Account For Paying Direct Debit
There are several people who are concerned about not having enough funds in their bank account to make payment for Direct Debits. If you don’t have enough money, the current bank account can have a buffer zone. This means that there is a small amount of interest that your bank will allow, and they won’t charge you as long as you creep into it.
Unfortunately, if you go over what is known as buffer zone, your bank will not pay the Direct Debit transaction and you will even be charged with a fee. For this reason, you have to be aware of your current balance in your account. This way, you will have time to put money into your account beforehand. However, if you do not have enough funds, you can arrange a temporary overdraft with your bank so that they can pay for it. You can also negotiate with the concerned organisation to collect the payment on a later date.
If you are missing out on your payments periodically, you must consider changing the payment dates. When you feel that this system is not working out for you, you can easily cancel this payment system at any time you want. However, you have to first inform the organisation or business establishment that you are paying before you cancel to avoid fees and penalties for the failure to pay a bill.
Ensuring Money in Your Account for Direct Debit Payments