Best time for payment

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Hi,
A very quick question please.
I have a credit card with a very high APR which I am attacking visiously. I have a minimum payment DDR going out and then pay as much as I can as an extra payment. My question is should I make the payment as soon as I have the monies available or should I wait until the payment is due?
Thanks for any help
LBM- finally kicked in 16/12/08 @ [strike]£41,862 [/strike] £0.00/ DFD- 24/12/13 :D


Comments

  • Squire_Fulwood
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    The reason they take income tax before you get your hands on it is to save you worrying about whether you should pay it later in the month or not. For this reason I would recommend that you paid what you could afford as soon as possible.

    There may be other good financial reasons for delay like if the money is earning interest etc. but to save you the moral dilemna of whether you should pay your debts or buy a new hat I recommend early payment.
    It's not my fault your honour, they made me do it.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
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    usually, but not universally, you are charged interest on your daily balance so paying as soon as possible will save a small amount of interest
    Make sure you undestand what happens with your DD if you pay additional amounts.
  • Robert_Sterling_3
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    The sooner you pay it the sooner you reduce the outstanding balance on which interest is charged I assume.
    ...............................I have put my clock back....... Kcolc ym
  • Olderbutnotwiser
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    Thank you, I wonder why I have always held on to the money until the last moment :o it really seems obvious now
    LBM- finally kicked in 16/12/08 @ [strike]£41,862 [/strike] £0.00/ DFD- 24/12/13 :D


  • BenL
    BenL Posts: 3,189 Forumite
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    Only hold onto it to near the payment date if you are in the interest free cycle and never get charged interest.

    Good luck with shfting the debt
    I beep for Robins - Beep Beep
    & Choo Choo for trains!!
  • Olderbutnotwiser
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    BenL wrote: »
    Only hold onto it to near the payment date if you are in the interest free cycle and never get charged interest.

    Good luck with shfting the debt
    Another good point thanks, my other card is in the 0% period
    LBM- finally kicked in 16/12/08 @ [strike]£41,862 [/strike] £0.00/ DFD- 24/12/13 :D


  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    Should I make the payment as soon as I have the money available or should I wait until the payment is due?

    In most cases, paying as soon as possible will save some interest, but there are exceptions. Because of the way Barclaycard calculates interest, for instance, there's little point in parting with your hard-earned before the payment due date.
    Originally Posted by CLAPTON
    Make sure you understand what happens with your DD if you pay additional amounts.

    Good point. The variations I have encountered are:
    1) The direct debit is recalculated if a payment is made at least x days before the DD is due [eg. Capital One, Egg]
    2) No account is taken of any payment made. The amount specified on your statement is automatically collected by DD unless instructed otherwise [eg. Co-Op, MBNA, RBS].
    People who don't know their rights, don't actually have those rights.
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