Set up a direct debit to avoid late payment fees

Late payment fees are fees that can be imposed on a wide range of debts and bill accounts by creditors and companies who have received a late payment or in some cases have not received a payment from you. In the current climate more and more people are at risk of missing payments or making late payments that could incur fees, which can make finances even more stretched at a time that is already very difficult for many.

A lot of people these days find that a large chunk of their income goes on paying off debts, leaving them financially crippled and unable to handle any charges that are then added to their debts or accounts. One industry expert said: “It’s worrying to see such a high number of people needing to use so much of their income just to service existing debt.”

In order to make sure that you do not incur fees by making late payments and missing payments on debt and bills it can pay to set up a direct debit. In fact, this can help in a number of ways, as it means that you do not have to go to the hassle of making cheque or card payments to individual companies each month, which can be very time consuming. It also means that you won’t have to try and remember who to pay and when to pay them, as the bank will have all of this set up for you. It also means that you are far less likely to miss a payment or make late payments that could result in fees being charged to your account.

One official said: “Setting up a direct debit helps consumers avoid missing payments and forking out significantly more than expected in interest payments and fees.”

Tags: fees, card payments, climate, chunk, large chunk, risk, late payments, individual companies, consumers, industry expert

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