A debit order is an agreement between you and a third party to take an agreed amount of money out of your bank account every month to pay for a service or to repay a loan. Here are some key points to know about debit orders:
- Debit orders make it easy to keep track of payments and ensure that your repayments are paid on time, every time.
- There are different types of debit orders, including DebiCheck debit orders, registered debit orders, and EFT debit orders.
- If you dont have sufficient funds to cover a debit order, you may be charged a penalty fee, as well as a late-payment fee and added interest to your account. Bounced debit orders can also reflect negatively on your credit profile and affect your credit history in the future.
- Debit orders are different from stop orders, which are an agreement between you and your bank to make a series of future-dated repeat payments on your behalf.
- Debit orders are a safe and convenient way to make recurring payments, and they reduce the need to deal with cash and improve security as all debit order processes take place electronically.
Overall, debit orders are a simple and reliable way to make sure you keep up to date with your monthly repayments and better manage your budget.
