Most people know there is a .25 percent interest rate reduction, but there are many things people are unaware of when its comes to Direct Debit.
1. You can only do Direct Debit monthly
For budgeting purposes people like paying biweekly but Direct Debit must come out once a month on the due date.
2. Direct Debit does not happen instantly
What happens depends on your servicer but you must submit an application, and get approval through your bank (make sure the info is correct). In addition, it usually starts the following month since if you are in the middle of a billing cycles most companies won’t pull to avoid double payments. Your company’s correspondence will help direct you for when your first Direct Debit payment will be.
3. You can take more than your payment
If you wish to pay $100.00 than your monthly payment of $50.00 you can do so. You just have to specify this on your form. Again every company has a different way of doing this. This extra money though cannot be specified towards a specific loan.
4. Even if you pay ahead Direct Debit will still pull full amount
Even if you loan is paid ahead Direct Debit will still pull. This causes making payments early in the month ineffective if you don’t want your payment still taken out. If you want to stop your Direct Debit you can request to have your Direct Debit suspended. Usually though you must do so several days before your money is pulled so your company has time to notify your bank.
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