Paying off full balance when you have DD set up

TheEffect

For Aqua, CapitalOne and Littlewoods, I have a Direct Debit setup to pay the minimum each month. I have paid the full amount off manually via debit card for Aqua and CapitalOne, and am about to for Littlewoods.

Do I need to cancel the Direct Debit to stop it from putting me into a positive balance, or will they just not take the DD as nothing is due?

The statements have already been produced and DD will be coming out in a week or two.
Thanks

Zack1

On my Natwest statement it says they'll take £5 off me anyway, it's only if it's setup to take the full balance that it won't take it if you pay in full. Knowing that, I'm cancelling it as soon as it shows up on my direct debit list

Bob_the_Saver

Don't forget that one of the 'advantages' of a credit card is for emergencies.
One example springs to mind, when travelling my partner fell ill and was in hospital for a week. OK the insurance (eventually - 1 year later paid the hospital's bill) but a credit card swipe was required on admission. We used mine that had a DD to pay the minimum amount ever month (I can then pay the rest off myself each month or take the interest if I wish). If she had used hers which pays the full amount off each month it might well have ended up more than the balance in her account used to service this DD. If you are in a hospital bed very ill it's not that easy to balance your finances.

Zack1

Bob_the_Saver wrote: »

Don't forget that one of the 'advantages' of a credit card is for emergencies.
One example springs to mind, when travelling my partner fell ill and was in hospital for a week. OK the insurance (eventually - 1 year later paid the hospital's bill) but a credit card swipe was required on admission. We used mine that had a DD to pay the minimum amount ever month (I can then pay the rest off myself each month or take the interest if I wish). If she had used hers which pays the full amount off each month it might well have ended up more than the balance in her account used to service this DD. If you are in a hospital bed very ill it's not that easy to balance your finances.

I don’t know how it would work, but would you not, hypothetically speaking, be able to claim back fees given the exceptional circumstances? Especially if you had a good record in the past and the spending patterns confirmed what you are saying? I mean I know they'd be well within their rights to say no you agreed to X, you pay it, but I think most could, given the circumstances, come to an agreement?

You are right that it is an important thing to consider though, I have never thought of anything like that happening. If I ever get hold of a 0% deal then I’d leave it as minimum payment (as that’s all I’d need to pay anyway) but at the moment it messes things up when I quite easily pay the full balance manually but then have to make sure £5 is left in the nominated account (that I don’t use, I swear I selected my other account…), so for this card at least it's easier to cancel the direct debit

Bob_the_Saver

Would you TRUST any financial/Insurance organisation to pay your fees. The Insurance bunch I'm talking about (Insure 'n' something or other, can't quite remember their name) it seems they still hadn't paid the excellent Asian hospital in Question a year later. So would you trust them to pay your expenses? The point is that if you are not able for whatever reason to operate your accounts you don't want them to all get blocked and everything to go 'tango alpha', whilst you are in hospital for example, especially when you're abroad.

Paul_Herring

TheEffect wrote: »

For Aqua, CapitalOne and Littlewoods, I have a Direct Debit setup to pay the minimum each month. I have paid the full amount off manually via debit card for Aqua and CapitalOne, and am about to for Littlewoods.

Do I need to cancel the Direct Debit to stop it from putting me into a positive balance, or will they just not take the DD as nothing is due?

It differs between providers - your best bet is to ring them up and ask, but still be prepared to have a DD come out. Cancelling the DD leaves you open to a bounced DD charge if they still try to take it.

Plus you'd be best advised to leave the DD in place if you want to continue to use the card.

If you intend to close the card, ring them up and ask for a final settlement value, and pay it there and then if you can and close the card in the same call. Ask for written confirmation that it's been closed, and don't cancel the DD until you've received it.

TrickyDicky

Also be careful when you ring up when cancelling a single DD. You need to give a few days notice because the DD charge order is actually sent through a few days before teh DD is actually taken and cannot be cancelled at that point