The benefits of using Direct Debit

If you’re not using Direct Debit you could be losing out on both money and time. If you have a Current Account with Clockwise Credit Union you can set up Direct Debits to take control of your spending.

These are 7 of the key benefits of Direct Debits:

1. Avoid Late Payments & Charges

When you set up a Direct Debit the payment comes out on an agreed-upon schedule. So both you and whoever you’re paying know exactly what amount comes out on which day. This means you’ll avoid any late payment fees or getting behind on your payments.

2. Set & Forget

Direct Debits are truly set & forget. Once you’ve set up a Direct Debit the money will be collected automatically without you having to remember to pay.

3. Save money on payments

Many providers, such as Energy Companies or Broadband Providers give you a discount for paying by Direct Debit. Money Saving Expert estimates that paying your Energy bill by Direct Debit can save you 6%

4. Fewer payment failures

If you’re paying for a long-term service such as energy or broadband, a Direct Debit can stop your payments suddenly stopping. If you pay by Credit/Debit card the card could expire, leading to a failed payment and possibly additional charges. Setting up a Direct Debit ensures your regular payments continue uninterrupted.

5. Easy to set up

Direct Debits are easy! You’ll often be given the option by an organisation when you sign up, but if you want to swap to a Direct Debit with an organisation you’re already paying just contact them and ask to set up a Direct Debit. They’ll arrange for you to complete a Direct Debit Instruction. This can be done by post, over the phone or online.

6. Flexible Payment dates

You can often set the date your Direct Debits come out – so you can have payments processed just after your salary or benefit payments come in.

7. Direct Debit payments come with a guarantee.

With Direct Debits you’re automatically protected by three important safeguards:

One: An immediate money-back guarantee from your bank or building society in the event of an error in the payment of your Direct Debit.
Two: Advance notice if the date or amount changes
Three: The right to cancel at any time.

Did you know as well as offering safe savings and affordable loans you can also open a Current Account with Clockwise. Manage your day-to-day spending (including Direct Debits) pay bills and receive any salary or benefit payments. Learn more here.

Share this post