Have you ever faced any hassles regarding the payment of bills? In our daily life, there are a lot of expenses that we have to keep up with. On the other hand, we may have quite a busy schedule. Sometimes, it is even the case that it simply skips our mind to make the payment, and then we get reminded only when facing the consequences.
If you have been in that situation at least once, you would surely want it to end and never happen again. Providentially, there is a way out of this dilemma. With methods such as direct debit and standing orders, there is no need to be concerned about this matter any more. Furthermore, you should have enough money in your bank account. Otherwise, it would be a whole different story. Paying your bills was never so easy, so let’s get to the details.
How does Direct Debit work?
Let’s suppose that you have a busy schedule and you are unable to keep up with the different types of bills. Or, it could simply be the case that you forget to pay them for some reason.
In any case, letting the person you owe withdraw the sum from your funds directly wouldn’t seem like a bad idea. Now, you might wonder whether that would be safe. In that case, you can be assured that it would be so without a doubt. Besides, it’s the bank’s responsibility to keep your money safe. Moreover, this type of transaction has virtually never been wrong.
So, now if you’re convinced, you can finally go for a direct debit to pay your bills. Not only is it easy to start, but cancelling the transaction is also super easy.
The people you owe have to let you know days before they can withdraw money from your funds. Thus, that’s another concern that gets eliminated from your mind.
Why choose this method to make a payment?
Direct debits are increasingly becoming the go-to choice for people to pay bills and this is not without a reason. There are some great benefits that it has to offer you. These are indeed good reasons for you to opt for this payment method.
Here are some of the best ways in which a DD helps you:
You can make the payment in equal instalments
In some cases such as electricity bills, the money you have to pay varies every month. This can understandably be a little inconvenient for you. If you want a way to make the payments easier, this is the one. By opting for this method, you can arrange to distribute the payments equally during the period. This way you’re able to pay your bills much easily as compared to other methods. Apart from this, there are other reasons as well.
You can set the suitable dates
In other cases, there are fixed days on which you have to make the payments. By choosing this method, you can talk with the people you owe and get a suitable payment date. So, this arrangement is more flexible than a regular one.
You can get discounts on this arrangement
How would it be if you can get a reduced payable amount? Using a direct debit, you can get a discount on the money you owe an organization. Otherwise, there are very few other arrangements that would probably allow this. The main reason that can be presumed behind this, is because this method is beneficial to the organization you’re paying.
The payments are automatic
The organization that you owe would be able to withdraw the amount from your bank account. If you think about it, this would be convenient for you. You won’t have to remember to pay your bills all the time, and this would also cancel out the risk that you face after forgetting to make the payments. You can simply keep running your business without any worries if you get this arrangement.
You can save a good amount of time
If you add up the time you take to think about paying your bills and doing it, you would surely have a significant amount. You would probably want to reduce this so that you can use it for other important purposes. Choosing a direct debit will let you do just that. It’s just the kind of arrangement you need, to pay your bills, even with a busy schedule and it gets much easier.
What security does this arrangement provide you?
Before you go for a direct debit, you must want to know the level of safety that your money will have. In that case, you can be assured that your money would be completely safe throughout the arrangement. All organizations that recover the money have to pass through certain processes from the bank. Only then can they take out the money from your account. Not only that, but the banks also monitor them very closely. So, there’s no reason for you to be worried about your money.
In addition to that, the organization you owe can’t withdraw money, without notifying you in advance. Sometimes, it happens that you pay the wrong amount or there’s an error in the transaction. In that case, you are guaranteed to get your money back. So, there is no need to be concerned that you might lose your money.
Moreover, you don’t have to stick to the arrangement once you get it. In case, you don’t have enough to pay, you have the option of cancellation. If the people you owe ask for payment and find insufficient money in your account, the bank can charge you for it. Other than that, they aren’t supposed to charge you any money.
How do you apply for this?
If you have decided to go for this arrangement, you just have to look for whether the option is available. If it is, you’ll be able to start it very easily. The provider will generally instruct you to fill up a form and submit it. You would also usually have the option to complete this process online.
Should you go for a standing order?
If you’re wondering if the arrangement previously mentioned is the best one, it is not so. There is an even better and more convenient one that you can get — a standing order. It is somewhat similar to the previous one, but not the same. In this, you get to pay the amount that you want to.
The organization you owe won’t have any say in deciding on that. Not only that, but you can also decide the period for which you’re going to keep up the payments. You can even change the amount you want to pay in the middle of the period. Needless to say, you can have the arrangement cancelled at any time.
How do you set it up?
This arrangement is very simple to set up. All you need is a basic or current account in the bank. If you’re looking for other ways, you can also use some specific credit union accounts. In addition to that, you may also use prepaid cards in some cases. The minimum age requirements differ, based on your account, but it is 11 mostly.
How do you set it up?
You can inform your bank through the phone if you want to send an amount to someone. If you prefer, you can also complete this process online. You have to give them the account number where you want to send the money.
How will it benefit you?
First, it would offer you more flexibility and control as compared to a direct debit. Only you can decide the amount you’ll pay, the dates, and for what period. So, this is more than just a viable alternative. It is a great method for sending a fixed sum of money at regular intervals to the people who you owe or even to your own savings account.
In fact, you can also tell the bank to send a particular sum to your savings account regularly. This would be a great way to steadily increase the money that you’ve saved.
Does it cost any money?
Generally speaking, a bank is not supposed to charge you anything for this arrangement. However, in some cases, it might be that you don’t have enough funds in your account to pay. In such a case, they can charge you an amount for it. So, you must keep an eye on your account balance and maintain the amount required for the payment.
Which one must you choose among direct debits and standing orders?
If you look at the control and flexibility you get, a direct debit falls short as compared to a standing order. Apart from that, both are very good options to pay your bills without the risk of forgetting about them. If you have to choose between them, you must go for the one that’s best suited to your situation.