What is direct debit and how do I register bills that are due?

What is direct debit?

Direct debit is a tool offered by your bank. With it, you can register some bills to be paid automatically.

In other words, you can register your account in the app and then, on the due date, the institution will pay the registered bill with the money available in your balance.

You do not need to make the payment manually, when activating this function the institution is responsible for the payment, however, it is necessary to have a balance in the account on the due date of the bill.

What happens if there is no balance in the account on the due date of the bill?

Simply put, the bill will not be paid automatically and will remain unpaid until you do so manually or add money to your account.

In some cases, the institution uses the emergency limit amount to pay off the debt, however, this practice is harmful to your finances.

This is because you will pay back the credit with interest added. Therefore, if possible, do not authorize this function or always leave the balance in the account within the correct period.

As you can see, we have already anticipated a major disadvantage of direct debit, However, in the next topic you can still check out other issues that deserve attention. Check it out!

Disadvantages

Direct debit is offered as a very advantageous service, however, it is important to know how to use it so that it does not disrupt your finances.

As previously stated, you need to ensure that you have funds available in your account on the day the payment is to be made.

This way, you will avoid delays or discounts on your emergency credit limit.

It is essential that you prepare for this payment in order to avoid going into the red. With automatic debit, the money that is deposited into your account on the day you pay your bills will be used to pay them.

So, you won't have control over these payments, if you're counting on the money to make other payments, you'll end up being left high and dry.

That's why it's very important that you plan ahead and always maintain your account balance.

Another issue to watch out for is variable payments, some bills will not have the same amount every month, for example your credit card bill.

To avoid unpleasant surprises when checking your balance, control your expenses and always keep an eye on the closing date of your bill.

Advantages of setting up direct debit for your account

Scheduling for this service is transparent. The institution will show you, before the amounts are debited, what discounts will be applied.

This way, you will have time to plan and add funds to your account before the discount date arrives.

With debit, you no longer need to waste time making manual payments. Plus, you don't have to worry about late fees.

All registered bills will be paid on time and you will have much more peace of mind.

No delays, no reduction in your score, and no risk of default. The time you would spend worrying about manually paying your bills can be spent on special moments with your family.

Finally, it is worth noting that some companies or financial institutions offer discounts, or even cashback for customers who set up direct debit for their main accounts.

So, put your bills due on direct debit and enjoy these benefits.

Which accounts can be registered for direct debit?

You can register different accounts in direct debit and make your life much easier, for example:

water;
light;
telephone;
gas;
credit card;
subscription services;
health plan;
taxes and duties.

How to register accounts due?

Bills that are due are those that are approaching their due date, so you need to organize yourself to pay them on time.

Delaying payments can cause some losses, for example, increased interest, disrupting the relationship with the institution and even reducing your credit score.

However, in the rush of everyday life and amidst so many payments, it is common for some to go unnoticed, so it is very important to organize yourself so as not to miss any payments.

First, read our text and Discover how to organize your bills and not miss any details.

Then, put your bills on debit and rest assured, because on time, all your bills will be paid correctly without you having to do anything, just make sure there is enough balance.

Accounts must be registered in your account application, normally the following option appears in the menu “set up direct debit for bills”. However, there may be variations depending on the application.

An example, in Nuconta, this option only appears for some users. To check if it is already available for you, open the Nubank app and scroll to the bottom of the screen where the “Find out more” option appears.

In this field, some functionality options appear, for example, salary portability, payments via WhatsApp and direct debit.

If it is already available, click on the option and register your account.

To better understand how this feature works, you can check the step by step that Nubank prepared.

Now, if this option does not yet appear in your Nuconta, continue enjoying everything the app has to offer and wait, as it will soon be available.

If you don't yet have an account to set up automatic debit for your bills and organize your payments, you can learn more about Nuconta.

It is 100% digital and free, and it offers many financial services and products that will help you organize your payments.

Conclusion

Now that you've discovered what is direct debit, its advantages and issues to keep an eye on, how about trying this service that can make your life easier and save you time?

Open your account now and take the opportunity to try out this feature!

By: Nara updated ago 2 years back

What is direct debit and how do I register bills that are due?