Here are some questions frequently asked by people managing on a budget. More common questions and answers on Direct Debit can be found by clicking on Did you know?
My finances are limited, how can Direct Debit help me control my outgoings?
Direct Debit enables you to spread the cost of many annual bills across equal monthly payments, making it easier to plan. You can also often choose the day of the month on which a Direct Debit is taken from your account. It makes sense to make that just after pay day.
I'm used to using cash as my way of budgeting and am worried about losing control.
Direct Debit is a great way to take control as you know which date each month key payments will be made. It can also save you over £200 a year when used across a range of regular bills.
I've never used Direct Debit, how does it work?
Direct Debit is a simple, safe and convenient way to pay your household bills or make regular or occasional payments from your bank account. You agree with the organisation the amount to be collected and the date of payment. From then on the amount will be deducted from your account as agreed. If they need to change the amount or collection date, they have to notify you first.
What happens if there isn't enough money in my account on the day a Direct Debit is due?
If the funds are not available in your account or agreed overdraft then the Direct Debit may be returned unpaid. This could result in a charge from your bank to cover the additional administration. If this happens it is important to act quickly to make funds available in case the Direct Debit is represented for payment. It is always best to speak to both bank and the organisation to whom the money is being paid.
