Why are direct debits bad?
While many people use direct debits as a payment system, this does not mean they are for everyone! There are a lot of factors to consider when setting up or agreeing to use direct debit as a form of payment. First, it is good to look into the negatives that can make it hard or bad to use a direct debit payment.
Direct debits can land your bank account in negatives because they charge your account regardless if you have the money. When there are insufficient funds, this creates an issue. Instead of waiting for your account to have the funds, there will be an error, which can lead to an extra fee or land your account in negative numbers.
Another bad aspect of direct debit is that it is not easy to cancel. Although you can cancel some payments online by deleting your card information, this is not the same with direct debits. Since you have agreed to the terms and contract, you will need to call either your bank or the company that has approved the direct debit payment. We recommend calling both so that there is no confusion and your account does not get overcharged.
The Bad of Direct Debits Conclusion
There are some negative aspects of using direct debits, but is it enough to stop you from setting them up with another company or organisation? Our repayment systems at Mortgage House are secure, headache-free, and easy to use! Contact one of our experts today to find more information about affordable and competitive loans.