Why Don't People Use Direct Debit??

clio

Thats sound P: well done bet your well chuffed eh. keep at it and you,ll get a good deal soon.

anna42hmr

exel1966 wrote: »

I supect most don't even consider it as they stick to the way they've always done it by doing it manually at a bank/by post/BACS/by phone etc.

.

i agree, i always used to pay mine in the bank or online, dependant on the card, i only started on dd when i went away for several months travelling to australia last year, as i could guarentee they would be paid in my absense, i have not looked back since, and would not cancel the dd as it makes life so much easier

Milarky

Cazza wrote:

Because I have different accounts for different types of spending, I don't want the whole bill to be paid from one account but I do spend everything on one credit card.

Doesn't stop you from having the minimum payment set up by direct debit on one of these accounts though, does it?

Geenie wrote:

I pay myself, online and direct from my Nationwide to BC. I go through the statement and tally with the receipts in my purse and get reminded of what I have purchased. In my case, the result has been quite a marked reduction in spending on non essential things, so has worked very well for me. You do have to be very organised about doing it on time.....especially because they seem to be changing the due by dates every month of late, but I feel more in control of my finances this way.

What you can do - although it is fiddly - is set up future-dated payments for each month, for a number of months - say for £1.00. Then, when you get your bill from BC you can adjust the amount and date of the next payment appropriately - At least I find that can help to list future payments (please allow for time for payment to reach BC though)

But, again - setting up a direct debit for the minimum payment is essentially without risk (2% of what you have owing in any one month?) and will always ensure you don't get charged £12 even if you still get stung for interest. (You then set up your own payment for the difference if aiming to pay the account in full each month)

G0AOZ

"Why Don't People Use Direct Debit??"

I'll tell you why... When you get organisations like the Council taking the monthly tax out of your account BEFORE it's due, and then never apologising or giving you any recompense for having made you overdrawn. That why people don't like Direct Debits....

skyrider007

Direct Debit goes out of your account within 3 work days of the due date. It is crucial that you have sufficient fund to cover the DD in your account during that period.

p1an0player

Milarky wrote: »

But, again - setting up a direct debit for the minimum payment is essentially without risk (2% of what you have owing in any one month?) and will always ensure you don't get charged £12 even if you still get stung for interest. (You then set up your own payment for the difference if aiming to pay the account in full each month)

It's can be a good idea to set up a d/d for the minimum but only if you don't operate your current account close to its o/d limit

Geenie

Milarky wrote: »

Doesn't stop you from having the minimum payment set up by direct debit on one of these accounts though, does it?

What you can do - although it is fiddly - is set up future-dated payments for each month, for a number of months - say for £1.00. Then, when you get your bill from BC you can adjust the amount and date of the next payment appropriately - At least I find that can help to list future payments (please allow for time for payment to reach BC though)

But, again - setting up a direct debit for the minimum payment is essentially without risk (2% of what you have owing in any one month?) and will always ensure you don't get charged £12 even if you still get stung for interest. (You then set up your own payment for the difference if aiming to pay the account in full each month)

Thank you for pointing this out Milarky. I hadn't thought about a minimum payment by DD and then paying the rest off each month by another means! Thought it could only be one way or the other.....but then I am not the sharpest tool in the box when it comes to being savvy on finance..:o

The hands on approach still works best for me, but it may be something to think about in the future if I feel I cannot continue this.

Snooze

G0AOZ wrote: »

"Why Don't People Use Direct Debit??"

I'll tell you why... When you get organisations like the Council taking the monthly tax out of your account BEFORE it's due, and then never apologising or giving you any recompense for having made you overdrawn. That why people don't like Direct Debits....

I may be wrong but as far as I know any direct debit that is honoured before the agreed date on the mandate is not your problem and the bank must refund any charges that are incurred as a direct result of it.

I've had this argument with A&L on a couple of occasions in the past where a direct debit has been taken on Friday instead of the following Monday when the payment due date has fallen on a weekend day and in all cases they've admitted that they were in the wrong and refunded all charges incurred because of it.

Rob

exel1966

Direct debits can be taken the last banking day of the week (Friday) if the payment due date falls on a Sat/Sun/Bank Hol monday. When agreeing to a DD this information should be made available to you. Not all companies operate to this though.

Geenie

skyrider007 wrote: »

Direct Debit goes out of your account within 3 work days of the due date. It is crucial that you have sufficient fund to cover the DD in your account during that period.

This was the problem I experienced as I pay the full amount off each month. Normally my money goes into my bank on the 1st and was paying BC by DD by the 4th or 5th which was the due dates, but one month BC suddenly wanted another payment at the end of the same month before my money had gone in to the bank on the 1st of the next month:eek: Does this make sense?!!

Anyway I got stung, because they don't even take out the minimum when a full amount DD fails, even though the minimum amount was available in the bank account. So I thought never again will I DD.