Your home or essential services could be at risk if you miss payments on household bills. If you remain in a deficit budget situation, your debt levels will keep increasing and eventually it may not be possible to borrow any more money.Ī deficit budget can also mean you cannot afford to pay for essential bills like your mortgage, rent, or gas and electricity. For example, you may find that you are using a credit card, going further into an overdraft, or asking friends or family for help. One impact of having a deficit budget can be that you start to rely on credit to top up your income. If you are worried about not being able to meet your debt repayments, see the later section Unable to make a payment. Does your income cover your household bills if you don’t pay any debts? Debt payments are paid after essential household bills. Do not include debt repayments at this point, just essential living costs. Consider essential costs onlyĪ deficit budget means not having enough money to pay for essentials such as your home, food or travel to work. You have a deficit budget if the money you need to spend each month on living costs is higher than the money you receive each month from work and benefits. You can change or cancel an automatic payment at any time.You may find that rising prices push you into a deficit budget. The bank can only set up an automatic payment on your behalf if they receive a form that has been signed by you or by someone who has authority to sign on your behalf with the bank. Talk to your bank if you don’t think these are fair. They can charge you a penalty fee if the payment can't be made - check their terms and conditions. The bank might try a few times to make the payment. If you don't have enough money in your account, automatic payments usually won't be paid. You can set an end date for an automatic payment or have it repeat indefinitely until you cancel it. You can choose the amount of the payment and when you want it to be made, eg if you get paid on alternate Wednesdays, you might set up payments to go out every second Thursday so you know you will have money in your account. You can usually set up an automatic payment yourself in your online banking. Make a complaint (external link) - Banking OmbudsmanĪn automatic payment is a regular payment that is set up and controlled by you. If you can't resolve it with your bank, look into making a complaint to the Banking Ombudsman. Or it might be to credit funds debited without authority, unless you benefited in some way from the payment, eg your electricity bill was paid even though the direct debit was unauthorised. This could include a refund for overdraft fees or penalty interest. If you lose money because your bank didn't cancel a direct debit authority when you asked them to, you might be entitled to compensation.
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