DirectDebits What is a direct debit? A direct debit is an automatic transaction that transfers money from one person's account to another. Direct debits are processed electronically and are typically used for recurring payments, such as your private health insurance or gym membership. DirectDebits How direct debits work When you set up a direct debit, you are allowing a service provider to automatically withdraw money from your account at set times to pay your bills or make your loan repayments. Direct debits or automatic payments can be a good way to manage your money, but they can become a problem if you don't have enough money in your account or you need to cancel the direct debit. DirectDebits It's a good idea to set a fixed amount if possible and a fixed date for your direct debits. Set it up for the day after your payday. This will mean you will always know exactly how much money is coming out and you will definitely have enough money in your account to cover the bill.
