When applying for a loan, you must decide whether to pay the monthly installments by debiting a current account or a postal payment slip. The spontaneous questions are: which one to choose between the two? Which is the most convenient in terms of practicality and “risks”?
In this article we will explain what is the current account debit, the postal payment slip, what is the difference between the two payment methods and which is the best.
Debiting a loan to the checking account
Until a couple of years ago, the Rid, Direct Wisebank Relationship was used to charge installments on a current account. In practice, the debtor authorized his bank to accept the debit requests from the credit institution in which the loan was requested to allow the institution to automatically withdraw the monthly amount of the installment.
The payment of the installments of a loan is currently made through a Sepa debit. In this case, unlike the payment via Rid, you authorize the credit institution to withdraw the monthly installments of the loan directly from the current account.
The SEPA debit of the installments of a loan on the current account has numerous advantages:
- You don’t have to remember every month to make the payment and therefore risk forgetting it. If you delay the payment of the installments of a loan, you risk being reported in credit information systems such as Crif;
- The bank makes the payment automatically every month
- You are exempt from stamp duty payment
- It is a safe system
- You can revoke the payment by debiting a current account at any time
If you decide to pay the installments of a loan by debiting a current account, you must be careful to always have the amount of the installment available every month to avoid finding yourself with the red account.
Payment of a loan by postal payment slip
If you decide to pay the installments of a loan by postal order every month you will have to go to the Post Office, to the authorized ticket offices or connect to the internet banking service. This payment method allows you to have under control the available finances. The disadvantages instead are manifold:
- You risk forgetting to pay the installment or pay it late, as a result, being reported in credit information systems
- For each payment made you must incur an additional cost
- You have to pay every month.
Debit on current account or payment by postal order?
As we have seen, between the two methods it is more practical and convenient to charge a loan on a current account. If, on the other hand, you request the assignment of the fifth of the salary or the assignment of the fifth of the pension, you do not need to choose one of the two methods. The monthly installments of both assignments are withheld directly from the salary or pension and therefore you do not risk forgetting to pay the installment or not having enough money on the current account.
Discover all the advantages of the transfer of the fifth of the salary and all the advantages of the transfer of the fifth of the pension!