Benefits
Almost half of UK bill payers prefer Direct Debit because it has so many advantages. So what exactly is Direct Debit? It's a simple way to pay regular and occasional bills and it's all done automatically, so you don't have to worry. And not only is it convenient for you, it's also really simple and safe!
All you have to do is set up a Direct Debit Instruction with the organisation you wish to pay, agreeing the amount and date the payment will be collected from your bank or building society. Once that's done, the money is deducted regularly. But don't worry - they can only take the amount you've agreed, and if they want to change the amount or date of collection they have to tell to you about it first.
So why does the Smart family love Direct Debit so much?
It spreads the costs
"Paying our regular bills by Direct Debit allows us to spread costs over a period that we've agreed", says working dad Terry Smart.
It's guaranteed
Direct Debit payments come with a guarantee so you're automatically protected by three important safeguards:
- An immediate money back guarantee from your bank in the event of an error
- Advance notice if the date or amount changes
- The right to cancel at any time
Learn more by reading our 'Your rights' section
It can save you money
Many organisations offer you a discount for paying by Direct Debit. In fact, you could save as much as £200 per year by using this method.
"It's certainly worth considering, isn't it?" says Rose Smart.
Find out more here: Saving you money
It gives you peace of mind
Direct Debit is one of the safest and most reassuring ways of paying your bills:
- Payments are made automatically, so bills are never forgotten or lost in the post and there's no risk of late payment charges
- Organisations using the Direct Debit Scheme have to pass a careful vetting process, and are closely monitored by the banking industry
- The Direct Debit Guarantee protects you and your money. It's offered by all banks and building societies that take part in the Scheme
It saves you time
"I'm rushed off my feet all the time," says new mum Aunty Kim. "But knowing how much money's coming in and exactly what's going out each month means I can stay on top of things."
Kim's right. Direct Debit does take the time and hassle out of your bills. And you can forget queuing at the bank and filling out cheques. Instead, you can enjoy more time to yourself!
