direct debts and credit cards....

grumbler

The problem is when you have a DD for min payment, but want to pay full balance. If you pay £780 in the hope that £20 will be taken by DD, you will end up with paying less than full balance if DD is readjusted. As a result you will incur interest on all purchases already made and next month you will pay interest on all purchases from the day of each transaction (and on part of old purchases).
It is fine if you can predict that the DD will be readjusted and pay full £800. However this is very different for different CC companies. Even if you know that DD will be adjusted, the payment must reach the account a sertain amout of days before the DD date to affect the DD. It is easy to make a mistake. This is what Rafter warned about.

CIMA_LOVER

grumbler wrote:

The problem is when you have a DD for min payment, but want to pay full balance. If you pay £780 in the hope that £20 will be taken by DD, you will end up with paying less than full balance if DD is readjusted. As a result you will incur interest on all purchases already made and next month you will pay interest on all purchases from the day of each transaction (and on part of old purchases).
It is fine if you can predict that the DD will be readjusted and pay full £800. However this is very different for different CC companies. Even if you know that DD will be adjusted, the payment must reach the account a sertain amout of days before the DD date to affect the DD. It is easy to make a mistake. This is what Rafter warned about.

aww. I understand your point. Thank you!