Banks are not only famous for their credit services like their lending options and packages when it comes to offering products like credit cards, personal loans, car loan etc. There are a lot of other features which banks these days have started researching into so as to widen their customer base depending upon high public demand and also by forecasting various market trends. One such facility is the Direct Debit facility. Direct debit is a revolutionary facility, which enables all your bills to be cleared automatically from the direct reach of your savings account. Users of this service are entitled to a great deal of flexibility and convenience as they are eligible to set the total amount that is due as well as the minimum amount that is due. With the help of this feature, you can request your credit card company to debit the outstanding bill amount from your savings account and with the help of the latter option; you can set a limit on the amount that can be debited from your account on a monthly basis. In case your credit card bill or any other bill that is to be cleared from the savings account exceeds the amount in your account, you can always make payments from other sources as well.
Direct debit has been a blessing in disguise for credit card users in many aspects. You not only save time from the conventional method of paying your bills, which involved manually writing a cheque and dropping it off at your nearest ATM, but at the same time, you don’t have to be constantly plagued with worries on the dates of making your payments. This will in turn save you from any late payment penalties or fines. All this is automatically taken care of with the direct debit facility. Your credit rating will also rise due to your timely payments, making it easier in the long run to secure any form of loans in the future. However, there are quite a few catches here since, when you seek to acquire this service, you need to sign a declaration with your bank which states that you will not close your account with the bank without prior consent from them. Also, you cannot hold the bank responsible in case a transaction has been delayed or hasn’t been carried out.
Always remember to maintain sufficient funds in your savings account at all times as in case your account has insufficient funds, you will face the burden of late payment penalties and charges. You will also not receive any grace period, which is often provided in the conventional method of the cheque facility. With the help of this facility, you can also be ensured that you will be saved from the hassles of any wrong bill being cleared from your account. In case you have been charged with a wrong amount from your debit or credit card company, then you can address the issue with your bank and the company, and the amount will be refunded directly to your account.
Direct debit is the best option for those users who wish to clear their payments in the easiest manner possible. If you prefer to take control of your funds directly without the involvement of strangers in the process, then this facility is the best option for you. However, if you are a businessman with a constantly fluctuating income, then refrain from this service as it may be a difficult task to decide the budget of your expenses. In the end, you may end up shelling out more cash than required in your transactions.