You need to make sure that for varying amounts of your bills, your money is enough to cover the payment amount. The difficult part is you do not know how much your next bill is. The amount deducted by your bank varies from month to month, for example with your phone and energy bills.

 

2. Wrong Debits Incurred.

 

We cannot assure that there will be no mistakes. Expect that there will be cases that a larger amount may be debited to your account, especially if there were changes on your agreement and those changes have not been implemented before the due date of the bill. It also happens in some cases that this type of service fails because of administrative problems within the bank or simply inadequate funds. Sometimes, your bills may be left unpaid putting the responsibility back to you.

 

3.  Costly and Expensive.

 

If there insufficient funds in your account, it can lead to penalty fees.

 

4. Payment Disputes

 

There are instances that the payment has already been taken from your account through direct debit or automatic payment but still, the institution may not have a record of receiving it.

 

5. Difficult to stop debit payments

 

It can be difficult for to stop direct debit and automatic payments. If you stop this type of service, you may still be indebted to the business or merchant for goods and services they have provided for you.  You may need to plan and negotiate with them for your alternate method of payment.

 

At the present, there are more convenient ways of paying our bills and it will surely increase in the future.   Direct Debit and Automatic payment are just ways of improving our lives and enjoying all the benefits it has.

 

Of course, all things have advantages and disadvantages. It is in our hands to choose what suits our needs. At the end, the responsibility is still ours.

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