Fixed payment amount

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2ilent8cho
2ilent8cho Posts: 97 Forumite
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I have my credit card set to pay the minimum and then i over pay on top with my debit card. If i were to say change my direct debit to a fixed amount every month instead of minimum, what happens to the direct debit when the amount owing is less than the fixed amount? Will they just take the outstanding balance instead or will i be put into positive balance? This is with Tesco Bank.

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  • datlex
    datlex Posts: 2,239 Forumite
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    If the amount you pay on your card is more than your minimum payment you may find they don't take your DD at all. What you may want to do is wait for the minimum payment to be paid, then in the gap between the two make the extra payment. Credit cards rarely go into credit.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • 20aday
    20aday Posts: 2,610 Forumite
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    I've held a Tesco Bank credit card in the past and my Direct Debit was for the minimum of £25.00.

    Anything less than this and they took the payment for whatever the outstanding balance was e.g. £20 meaning you'd be unable to end up with a positive balance (unless you'd received a refund etc).
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
  • winspiration
    winspiration Posts: 284 Forumite
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    You can set up a direct debit just to take whatever the outstanding balance is, i.e. to clear it in full each month. That's what I have for both of my cards.
  • wiseonesomeofthetime
    wiseonesomeofthetime Posts: 2,080 Forumite
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    2ilent8cho wrote: »
    I have my credit card set to pay the minimum and then i over pay on top with my debit card. If i were to say change my direct debit to a fixed amount every month instead of minimum, what happens to the direct debit when the amount owing is less than the fixed amount? Will they just take the outstanding balance instead or will i be put into positive balance? This is with Tesco Bank.

    I pay a fixed amount to Tesco Bank for my balance transfer card so that it exceeds the minimum payment and avoids a minimum payment marker on my credit file.


    I check my accounts regularly, so when it gets close to the end of the deal I will simply amend my DD instruction accordingly.


    No doubt, you also check your accounts regularly?


    To be honest, I've never allowed my accounts to be in a position where the DD would be more than the balance, so cannot accurately answer your query directly. Sorry.
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