direct debit

andy_skellington

Hi
Dont know if this is the best place to put this so if not could the mods move it?

Had my MOT done this month and it cost way more than expected to fix and now i find myself with not enough money in the bank to cover my next two direct debit payments (9th aug and 14th aug) . I have used up my overdraft and dont have enough in that either to cover either of the direct debits.

So, question is could I use my credit card to make the payments on the direct debits just for this one month only. Kinda a one off payment really.

Stressing out my nut about this as Lloyds and bank charges are the worst thing ever and im already skint with my car.

Was thinking either that or phone up both companys (phone and car insurance) and ask them if they could wait a few days.... Unlikely I know!!!

Help?

CannyJock

You could try and contact the companies to see if they will accept a credit card payment instead. If they've already made the submission for the direct debit then probably too late.

If you've not already, would be worth looking on the DFW board (http://forums.moneysavingexpert.com/forumdisplay.html?f=76) for more support in helping you get yourself out of the debt you're in.

Brian1966

Normally a big NO NO but if you have sufficient credit available take a cash advance then repay ASAP. Better than bank charges and/or a late payment marker on bank account
Given the timescale..9th August onwards it may be possible to pay via credit card prior to direct debit date but you may need to CANCEL the original D/d then reset up.

YorkshireBoy

Can you ask the bank to temporarily increase your overdraft facility?

Another option is to borrow from family/friends to fund the current account?

Taking a cash advance on the credit card could cause you major problems if you already have a purchases/BT balance on there. This is due to the 'order of payments' meaning the transaction will be trapped accruing high interest until the entire balance is cleared to zero.

Cancelling the direct debits, and risking subsequent problems there, would be my last option.

I assume the garage didn't accept credit cards for the MOT and subsequent repairs then because, with hindsight, that would have been the best approach?

andy_skellington

I didnt pay for the repairs via card. I used cash as it was a friend that did it for me and cash only.

My rents are on holiday just now as well and my brother doesnt get paid till next week so he's not able to either.

Im actually on the DFW board, just when it comes to budgeting in for emergency payments while trying to clear debt im not too good at. Maybe i should wait to the end of the month before making those extra payments!

Im gonna contact the companies today and see if they will accept a credit card payment and then as soon as i get paid. Pay back the amount on the credit card. This wont really effect my balance will it?

Lloyds have refused the overdraft extending.

And whats a cash advance? Is this better than just making a payment over the phone on the card?

YorkshireBoy

andy_skellington wrote: »

I didnt pay for the repairs via card. I used cash as it was a friend that did it for me and cash only.

Could "friend" loan you the money back?

...my brother doesnt get paid till next week so he's not able to either.

"Next week", assuming that's Friday 7th, would be soon enough. Just get the cash in the bank by close of business Friday.

Im actually on the DFW board, just when it comes to budgeting in for emergency payments while trying to clear debt im not too good at. Maybe i should wait to the end of the month before making those extra payments!

Whilst it's good to repay debts rather than save, it's even better to have an emergency fund. I think you're now thinking along the same lines?

Im gonna contact the companies today and see if they will accept a credit card payment and then as soon as i get paid. Pay back the amount on the credit card. This wont really effect my balance will it?

The companies will likely put their DD requests into the system Mon/Tues next week so you need to act today if that's what you've decided. It is frought with danger though (that's why I said above I wouldn't do it), because to do right you should cancel with your bank. If the company messes up and still tries to collect you'll be incurring bank charges. Whilst you may be covered under the DD guarantee for reinbursement, this will not cover any fees applied. This will damage your rating with the bank (sounds like it is anyway, if they won't extend your facilities?).

And whats a cash advance? Is this better than just making a payment over the phone on the card?

No. A cash advance is where you put your card in an ATM (as you would with a debit card), or hand it over in your bank, to draw cash. There will be a 3% fee attached and the transaction will incur high interest (20%+). Worst of all, and as I said above, the transaction will be locked in at this high interest until you completely clear the card's balance.

DesG

How much do you need and for how long?

Another option is to use the payday loan crowds, normally it would cost you a fair bit, but there is currently an offer on paydayuk on quidco that will give you £50 cashback which will cover the fees/interest.

It may be a way of covering your short term cash flow at no cost, or even make a slight profit

Cheers, Des.

DesG

Here is th link to the thread discussing it: http://forums.moneysavingexpert.com/showthread.html?t=1832713

Cheers, Des.

andy_skellington

Well guys thanks for all your comments but fortunatly I have managed to get a wee loan of money (from a good friend) to cover me life saver.

But yes your right on the credit rating, I think its in absolute pieces by now (had some real problems last year with missed payments on pretty much everything and still got a bunch of debt hanging around my neck)

But you just gotta plod on.

jonesMUFCforever

Let's hope you pay your friend back - there have been plenty of postings on these boards recently of ''friends'' who have left their mates in the lurch!

andy_skellington

well its kinda handy my mate gets paid on the 30th and i get paid on the 5th. So he gets a wee bit of a boost (i said i would chuck in a crate of beer) halfway through the month.

Also i have made a £300 bonus this month and he is guaranteed that. I have never asked my mates for money and hopefully will never have too. As suggested above, the rest of my bonus this month will be going into my other account fo "emergency" only. Never know when stuff like this will come um and I really did not like asking my best mate for money. Never again!!