At Tonik we aim to complete regular account reviews; we consider your actual usage, what we think you will use in the coming months (projected consumption), your current balance, and your current monthly payment amount.
The following explains how we work out whether you may need an increase or decrease in your Direct Debit (DD):
We take your current balance, divide it by 12, and add it to your projected monthly usage.
For example, if you are currently paying £60 a month based on your initial usage quote of £720 for the year, but you now find yourself in £140 of debt 6 months in. We’d take that -£140 and divide that over twelve months then add this to your projected monthly cost.
Current Annual Payment |
£720 |
Projected Annual Cost |
£1200 |
Payment Difference |
-£400 |
Current Monthly Payment |
£60 |
Projected Monthly Cost |
£100 |
Current Balance |
-£140.00 |
New Direct Debit Amount |
£111.66 |