If you pay your creditors by debit order, the default will be set to the minimum amount that you have due each month. However, what if you wanted to pay more?
We have a look at how you can increase your debit order payments, and we consider the long-term benefits of doing so.
Tip: Don’t let your debt get out of control. Start debt consolidation today.
Can you increase your debit orders – and should you?
According to Hayley Parry, money coach and facilitator at 1Life’s Truth About Money, you are well within your rights to change your debit orders to increase your payments to creditors.
You can contact the creditor directly to request this change, but if you are under debt counselling, only your counsellor can place this request.
Assuming you can afford it, Parry notes that increasing payments is a very good idea.
READ MORE: Thinking of skipping your debit order payments? Don’t!
“Increasing your payments allows you to pay back your debt over a shorter term than your creditor expected. The result is that you will have paid less money in interest over the term of the loan or debt,” says Parry.
“It’s advisable that you do this when your financial situation allows it, as this is a good financial ethic. In effect you work yourself away from debt and towards better financial practice and freedom,” she adds.
Parry cautions, however, that you should be sure to speak to your creditor about whether the extra money will in fact reduce your debt, or whether it will only go towards the interest accrued.
You can get started with debt counselling today. Have a look at your options here.