Direct debit

Direct debit is something that most of us are familiar with in these days of electronic banking.

A direct debit is where you set up, or authorise, a payment on a regular basis to cover a bill or payment. Typically this might be monthly or quarterly, or indeed annually, and it allowed the person or company that you are paying money to collect the debt on the date the payment is due to be made.

Therefore this is a very convenient way of collecting payments as it saves having to send out letters requesting payment each time one is due, and saves having to process cheques or chasing payments and so forth. Because of this some companies offer a discounted price for those who pay by direct debit.

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