Debit processing (LSV) or Direct Debit (DD): management of your payments!
Do you have difficulties to make your payments on time? Do you want to have a better organisation for the management of your bills? Do you know the debit processing (LSV) from the banks or the Direct Debit (DD) from PostFinance?
How does the debit processing and the Direct Debit work?
It’s a system that allows you to pay your bills directly with a standing order. You can use the debit processing, known as LSV, or the Direct Debit from PostFinance, named as DD too, for the payment of your rent, your leasing or your insurance premium.
The debtor has to sign an authorization for the LSV or DD with the creditor and the bank or the post. Thus, the payments are monthly and automatically executed. The debtor has just to check the transactions on its bank or post account. It has 30 days to contest an incorrect debit.
What are the advantages of the LSV and DD?
The debt processing from the banks and of the Direct Debit from PostFinance allows the debtor to pay on time automatically. It prevents the payment delays and helps to maintain a healthy budget.
The LSV and the DD can be used for bills with fixed amounts or with variable amounts. This solution avoids the debtor to receive paper bills and reduce the administrative fees.
What will happen if the account balance is insufficient?
The creditor sends generally a paper bill to the debtor. The debtor can pay the bill when it receives money. It’s recommended to notify the creditor when you have difficulties to pay a LSV.
What can you do if you have difficulties to pay your bills?
You have to determine the priorities of your budget. In principle, the payment of the rent and the charges of your housing and the payment of insurance premiums are the most important.
For your credit and leasings, you can opt for a solution of debt consolidation. The debt consolidation reduces the monthly costs because it extends the duration of the combined credits. Thus, the monthly budget is lightened.
Our partner Multicredit is abble to propose you solutions to recover a stable financial situation.
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