How to Pay Debit Interest

Customers have three main options for paying debit interest and continuing their credit relationship with the bank without facing the negative consequences of missed payments:

• If they have sufficient funds, they can pay the interest immediately, either in cash or via a bank transfer from another account. This avoids any form of capitalisation and, therefore, prevents the debt from increasing.
• They can authorise the bank to charge the interest to their account. In this case, the interest is added to the principal and is no longer shown separately. Specifically:
1. If the account has a positive balance on 1 March, the interest will be paid by offsetting it against the available funds.
2. If the account is overdrawn, the interest will be paid by increasing the amount of credit used.
• They can agree with the bank, through a specific clause in the contract, that incoming payments to their account - such as bank transfers - will be used to pay off the interest owed. It's a good idea to check what your contract says about this option.