Introducing Direct Debits early

As most of us have been using bank accounts and Direct Debit collection for years, it’s easy to take their advantages for granted, but if your children are on the brink of opening bank accounts to start paying their own ways (or more likely, saving for those trainers they just can’t do without) it’s a good time to introduce them to the advantages of paying via Direct Debits. After all, it’s never too early to learn to control your finances.

If your almost-adult is thinking about earning their own money and saving it somewhere, then that’s a great start, and if they’re going to take responsibility for paying bills such as their mobile phone bills, or paying for their own items once they have a little money coming in, then understanding about how Direct Debits work and how they can make things easier will place them one step ahead… just think how savvy they’ll need to be at uni in a few years.

Talk them through how to set up a Debit using internet banking, as no doubt seeing just how easy the procedure is will make them more likely to make use of the scheme when they start to take more responsibility for their own outgoings. It’s a good idea to point out that they have an alternative to paying out for items in one lump sum, as Direct Debits enable them to make smaller, regular payments on a chosen date that suits them.

Even if they’re not earning a large amount at the moment, learning the skill of managing money is one of the most valuable ones older children can grasp as they step into the world of managing their own finances, and introducing Direct Debit as an option can help to make the prospect far less daunting.

Direct Debits and your budget

In times of financial strain, it’s more important than ever to keep a close eye on your outgoings, and Direct Debits can help you to take back control of your money. If money’s tight, choosing to make regular payments such as for household bills by a Debit scheme means you’ll know exactly how much money will be leaving your bank account and when, and that means there’s far less scope for nasty surprises when it comes to checking your balance.

The last thing you need when you’re stretched is an unplanned overdraft fee, and Direct Debit collection makes it easy to avoid straying into your overdraft without warning as you’ll be able to plan around your payments.

Better yet, most companies are happy to let you pick the date for your Debt to leave your bank account, so you can choose a date which is easier for you such as payday. Once you know when your larger payments will be leaving your account each month, it’s easier to work out how much you have left to meet your other financial demands.

If you set up a Direct Debit to make regular payments to a company, ask whether you’re entitled to a discount. Many businesses reward customers who pay via a Debit arrangement with a reduction on the price, and that can only be a good thing. It often tells you on your bills if you’re going to be eligible for a discount, but it’s always worth double checking – especially when times are hard.

If nothing else, paying for items by Direct Debit can help to relieve the pressure, especially for essential items that you just can’t do without. After all, it’s easier to make a small payment on a regular basis than one lump sum when you don’t have the money spare.