How Direct Debits can Protect Your Credit Rating
As we often have so much to pay for, it can be so easy to forget about one or two bills. Unfortunately, this may lead to outstanding debts that will set back a person's finances or ruin their credit rating. However, direct debit payments might be the perfect solution to keep bills in check and a credit rating high.
What is a Direct Debit?
A direct debit allows a company to withdraw an agreed sum from an account on an agreed date. Therefore, the bill payer won't have to make a payment into an account, as it will be automatically transferred to an organisation.
Spread the Repayment Costs
Many people opt for a direct debit as it can help spread repayment costs over a longer period of time. The bill payer can therefore pay bills in smaller, affordable amounts, in comparison to a large cash lump sum. One benefit of a direct debit is that the money will leave an account on the same date every month, week, etc., so the account holder will know when the payment will be taken.
Guaranteed
Every direct debit will come with a Direct Debit Guarantee, which offers protection if a company or bank/building society make a mistake. For example, if they transfer the wrong amount from an account, the account holder will receive an immediate refund. Also, should the direct debit date change, they will receive advance notice to sort their finances. Should they decide they no longer wish to pay a bill by direct debit, they can simply cancel it with the bank.
Peace of Mind
Direct debit payments are regarded as one of the safest payment methods available for three reasons:
· It protects the bank account holder and their money.
· Automatic payments will ensure bills are not forgotten, lost or delayed - so the bill payer won't incur any late repayment charges or damage to their credit score.
· Every company using the Direct Debit scheme will undergo a strict vetting process, and they are monitored closely by the banking industry.
The account holder can therefore trust that their finances will not be abused by an organisation, and that bills will be paid on time.
Discounts
Direct debits are not only convenient for the bank holder, but they benefit businesses too as they won't have to chase late repayments, etc. For this reason, some companies may offer discounts when a customer pays via direct debit. It therefore pays to check any bills to see if there are any savings to be made by switching to direct debit.
Disadvantages
While direct debits are a great way of regularly making payments, they can have their disadvantages. If a bill payer decides to pay by direct debit, it is essential they have the appropriate funds in their account, as a bank might not make the payment to the organisation. Not all banks will inform a customer if they've missed a payment, which can lead to numerous missed payments that may significantly affect a person's finances and credit rating.
If you are struggling with debt and would like informative, free advice, we recommend you seek immediate professional help. Don't suffer in silence. Consider a debt management plan or IVA, or contact a member of our team for further assistance.
As we often have so much to pay for, it can be so easy to forget about one or two bills. Unfortunately, this may lead to outstanding debts that will set back a person's finances or ruin their credit rating. However, direct debit payments might be the perfect solution to keep bills in check and a credit rating high.
What is a Direct Debit?
A direct debit allows a company to withdraw an agreed sum from an account on an agreed date. Therefore, the bill payer won't have to make a payment into an account, as it will be automatically transferred to an organisation.
Spread the Repayment Costs
Many people opt for a direct debit as it can help spread repayment costs over a longer period of time. The bill payer can therefore pay bills in smaller, affordable amounts, in comparison to a large cash lump sum. One benefit of a direct debit is that the money will leave an account on the same date every month, week, etc., so the account holder will know when the payment will be taken.
Guaranteed
Every direct debit will come with a Direct Debit Guarantee, which offers protection if a company or bank/building society make a mistake. For example, if they transfer the wrong amount from an account, the account holder will receive an immediate refund. Also, should the direct debit date change, they will receive advance notice to sort their finances. Should they decide they no longer wish to pay a bill by direct debit, they can simply cancel it with the bank.
Peace of Mind
Direct debit payments are regarded as one of the safest payment methods available for three reasons:
· It protects the bank account holder and their money.
· Automatic payments will ensure bills are not forgotten, lost or delayed - so the bill payer won't incur any late repayment charges or damage to their credit score.
· Every company using the Direct Debit scheme will undergo a strict vetting process, and they are monitored closely by the banking industry.
The account holder can therefore trust that their finances will not be abused by an organisation, and that bills will be paid on time.
Discounts
Direct debits are not only convenient for the bank holder, but they benefit businesses too as they won't have to chase late repayments, etc. For this reason, some companies may offer discounts when a customer pays via direct debit. It therefore pays to check any bills to see if there are any savings to be made by switching to direct debit.
Disadvantages
While direct debits are a great way of regularly making payments, they can have their disadvantages. If a bill payer decides to pay by direct debit, it is essential they have the appropriate funds in their account, as a bank might not make the payment to the organisation. Not all banks will inform a customer if they've missed a payment, which can lead to numerous missed payments that may significantly affect a person's finances and credit rating.
If you are struggling with debt and would like informative, free advice, we recommend you seek immediate professional help. Don't suffer in silence. Consider a debt management plan or IVA, or contact a member of our team for further assistance.
The most expensive things ever sold on eBay
Despite the state of the economy in recent years, there are still people who have a lot of money and like to splash out on extortionate possessions. The popular bidding website eBay was founded in 1995 and is now estimated to be worth $7.7 billion. It sells everything from stamps to houses, but what are the most expensive things ever sold on eBay?
$1.1 million Baseball card
The card, issued in 1909 by the American Tobacco Company and measuring 2.5 by 1.5 inches, was previously owned by well-known sports memorabilia collector Michael Gidwitz, former Los Angeles Kings owner Bruce McNall, and ice hockey legend Wayne Gretzky. Experts say the card's "quality, rarity, and legend" make it the most illustrious baseball card on earth.
$2.6 million lunch with Oracle of Omaha
The winner of eBay's most expensive charity auction ever, who asked to remain anonymous, paid $2.6 million in 2010 for a lunch date with Berkshire Hathaway (BRK) CEO Warren Buffett, also known as the third-richest person in the world.
The annual Warren Buffett Power Lunch Auction has raised more $9 million for the world-renowned Glide Memorial Church, an organization in San Francisco, Calif., that has been feeding the hungry for more than 45 years.
The record-setting price for lunch with Buffett topped the 2010 winning bid by $100.
$1.77 million Bridgeville, California
Anyone want to buy a town? Bridgeville, Calif., and its 30 or so residents have been on the auction block three times since 2002, when the northern California community became the first town ever to sell on eBay. The winning bid -- $1.77 million. That got you an 83-acre town including eight houses, a cafe, and a post office.
Oh, and a hell of a view. Laguna Hills, Calif., mortgage banker Bruce Krall, who owned Bridgeville from 2004 to 2006, said in an interview with The Orange County Register that in the town "at night, when the clouds roll in over those mountains, it's spectacular."
But being owned is unpredictable -- and potentially tragic. Bridgeville's most recent owner, a 25-year-old college student, committed suicide in Los Angeles in 2006 only a few months after buying the town from Krall for $1.25 million.
$140 million Giga-yacht
Any self-respecting James Bond villain can't be without one of these -- a ginormous boat with a built-in helicopter garage. And that 405-foot "giga-yacht," built by Frank Mulder of Mulder Design, could've been yours for a measly $140 million.
Listed on eBay in 2005, the yacht came equipped with 10 multi-level suites with panoramic windows, eight guest cabins, a salon, a cinema room, a fitness room, an office area, and your very own mega-laser (OK, we made that last one up.) The chopper garage offered "the ultimate in protection and functionality for your helicopter, to better reach those remote areas," according to 4Yacht Inc.
The winning bidder? Anonymous, of course.
$1.1 million Baseball card
The card, issued in 1909 by the American Tobacco Company and measuring 2.5 by 1.5 inches, was previously owned by well-known sports memorabilia collector Michael Gidwitz, former Los Angeles Kings owner Bruce McNall, and ice hockey legend Wayne Gretzky. Experts say the card's "quality, rarity, and legend" make it the most illustrious baseball card on earth.
$2.6 million lunch with Oracle of Omaha
The winner of eBay's most expensive charity auction ever, who asked to remain anonymous, paid $2.6 million in 2010 for a lunch date with Berkshire Hathaway (BRK) CEO Warren Buffett, also known as the third-richest person in the world.
The annual Warren Buffett Power Lunch Auction has raised more $9 million for the world-renowned Glide Memorial Church, an organization in San Francisco, Calif., that has been feeding the hungry for more than 45 years.
The record-setting price for lunch with Buffett topped the 2010 winning bid by $100.
$1.77 million Bridgeville, California
Anyone want to buy a town? Bridgeville, Calif., and its 30 or so residents have been on the auction block three times since 2002, when the northern California community became the first town ever to sell on eBay. The winning bid -- $1.77 million. That got you an 83-acre town including eight houses, a cafe, and a post office.
Oh, and a hell of a view. Laguna Hills, Calif., mortgage banker Bruce Krall, who owned Bridgeville from 2004 to 2006, said in an interview with The Orange County Register that in the town "at night, when the clouds roll in over those mountains, it's spectacular."
But being owned is unpredictable -- and potentially tragic. Bridgeville's most recent owner, a 25-year-old college student, committed suicide in Los Angeles in 2006 only a few months after buying the town from Krall for $1.25 million.
$140 million Giga-yacht
Any self-respecting James Bond villain can't be without one of these -- a ginormous boat with a built-in helicopter garage. And that 405-foot "giga-yacht," built by Frank Mulder of Mulder Design, could've been yours for a measly $140 million.
Listed on eBay in 2005, the yacht came equipped with 10 multi-level suites with panoramic windows, eight guest cabins, a salon, a cinema room, a fitness room, an office area, and your very own mega-laser (OK, we made that last one up.) The chopper garage offered "the ultimate in protection and functionality for your helicopter, to better reach those remote areas," according to 4Yacht Inc.
The winning bidder? Anonymous, of course.