Welcome back!
In our last lesson, we learned about the information that must be included in your credit agreement.Definitions of the week: DEBIT ORDER A debit order is an agreement between you and a third party (your credit provider), which gives the third party permission to collect money directly from your bank account each month. This way, you do not need to make manual payments to your credit provider. You need to sign a consent form for the credit provider to set up a debit order.
In today’s lesson, we will talk about making credit payments. Remember, your credit agreement states when and how payments will be made, the number of payments, and the date of the first and last payments. After signing your credit agreement, it is important that you start paying from your first instalment, and that you pay every instalment. Usually, instalments need to be paid once a month, at the end of a month, or the beginning of the next month. A credit provider might require a stop order (an instruction you give your bank, to pay a fixed amount each month to a third party), or a debit order. If the credit provider does not tell you how to pay, you may choose to make an EFT (Electronic Funds Transfer) into the credit provider’s account, or make a cash deposit at the bank. In some cases, you may be allowed to send a cheque. The problem with making an EFT or paying cash, is the risk of forgetting to make your monthly instalment. Also, there is also a possibility that you might spend the money that you have budgeted for your credit repayments.
![Knowing Credit: Your Responsibilities [Part 2/3] Making Payments in terms of your Credit Agreement by Compuscan](http://dev.blog.mccb.com/wp-content/uploads/2017/11/Untitled-design-300x300.png)
Helpful Hint: If paying your credit instalments via debit order is not specifically required, you should look at all the different payment options available. Choose the one that best suits your needs and payment behaviour. Remember, if you choose to make your own payments each month, rather save your credit provider as a beneficiary and pay via internet banking.
This was Part 2/3 of the series on the responsibilities of credit. In our final lesson next week, we will talk about the consequences of defaulting on your credit agreements.