Real Talk… when is the last time you reviewed your bank accounts and credit card statements to see which authorized businesses and services are debiting money from your account?
With the popularity of this payment type, it is easy to lose track of what is coming out and when, even sometimes having things come out that you no longer use or don’t remember authorizing. A Direct Debit Audit is a great way to re-establish exactly what your recurring obligations are, and this tool can help to pinpoint spending that’s no longer necessary. Many people have these Direct Debit payments set-up with several businesses and services with annual, monthly or weekly subscriptions.
Why is doing a Direct Debit Audit important and recommended? It will determine what businesses and services are taking money out of your account/off your credit card regularly, when and for how much. You can determine if there are any payments coming out that you are no longer utilizing or were unaware of. If you are looking to create a new budget, this will show you where your money is going and you can determine if any cuts can be made.
How to complete a Direct Debit Audit:
Track for a full month’s cycle what is automatically coming out of your account/off your credit card - e.g. April 1 - May 1 - A written or digital spreadsheet would work well for this. Record the business/service, the withdrawal date and the withdrawal amount.
Determine if you are still using the business or service. If not, cancel it.
Can you cut any fee that is underused or doesn’t need to be a regular item? Consider where you can reduce packages if you still require some, but not all subscribed services.
Tip: Be sure to save your audit so you can refer to it at a later date if you need to create a new budget in the future and for future audits.
It is a good idea to conduct an audit on your Direct Debts at least annually so you can be sure that you aren’t loosing money on things you no longer use. You’d be surprised at what you can save!