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Auto debit
#1
Have you tried paying loans by auto debit? Some of the lenders gives option to have your loan payment or installment by auto debit. Have someone tried to use this option? Is it safe for you account? It is maybe a good way to have your payments settled automatically to avoid delays, hassle and forgetting your debt. But would this be also risky on your part?
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#2
Yikes! Paying by auto debit could be a recipe for disaster. I would not trust any lender even major credit cards or utility companies with access to my bank account or other financial data.
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#3
I think this makes a lot of sense especially if you don't know how to handle your money well. I know this form of payment as direct debit. At a certain date, probably at the begging of the month you set up a direct debit for your loan repayment to come out of your account. It's best to do this near the date that you expect money into your account so that you can settle your debt. I think this method is safe because they can't remove more money than you have instructed and you can cancel the debit at any time.
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#4
I don’t pay any bills by auto debit. I setup calendar reminders for each bill then i pay by debit card when
I am ready and for the amount I specify


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#5
I know automatic payments have their own benefits like less stress and excluding the need for one to remember when they have to pay their bills/loan, but I personally don't like the idea of auto debit. I would prefer to be in control of when I pay and how much I pay. I don't mind the the hassles.
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#6
Nope, I haven't tried auto debit. It may seem good to other people because they would think that it can help them not to worry anymore about their bills and hassle-free but it's kind of risky. Banks can make an error too they're not perfect yet and worst it could wipe out your bank account if you're not fully aware and didn't have time to check the transactions more often. I'd rather still pay my payments bills than relying on auto debit.
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#7
(01-31-2018, 01:15 PM)kgord Wrote: Yikes! Paying by auto debit could be a recipe for disaster. I would not trust any lender even major credit cards or utility companies with access to my bank account or other financial data.

I agree with this, why would you trust your bank accounts to people you don't even know? Even if their company is legit, people shouldn't just trust someone to access a persons bank account. People should know that people do crazy thing when it comes to money.
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#8
A direct debit or direct withdrawal is a financial transaction in which one person withdraws funds from another person's bank account. Formally, the person who directly draws the funds instructs his or her bank to collect an amount directly from another's bank account designated by the payer and pay those funds into a bank account designated by the payee. Before the payer's banker will allow the transaction to take place, the payer must have advised the bank that he or she has authorized the payee to directly draw the funds. It is also called pre-authorized debit (PAD) or pre-authorized payment (PAP). After the authorities are set up, the direct debit transactions are usually processed electronically. Direct debits are typically used for recurring payments, such as credit card and utility bills, where the payment amounts vary from one payment to another. However, when the authorisation is in place, the circumstances in which the funds are drawn as well as the dates and amounts are a matter of agreement between the payee and payer, with which the bankers are not concerned. In countries where setting up authorization is easy enough, direct debits can also be used for irregular payments, such as for mail order transactions or at a point of sale.
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