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.