Won't allow fixed monthly direct debit - Santander - advice

Mrsunseeker

Warning
I have seen on some boards where people have set up dd to pay minimum payments on there credit cards then decided to pay a bit extra by cash or other means.
The other payments have caused the dd's to not be taken. They have then had charges incured has they have not paid the full minimum amount required. It also caused the card to go from a zero card to a high interest card.
The credit card company's just said it is all in the terms and conditions.

withnell

nzseries1 wrote: »

I have had 9 different credit cards in the last 4-ish years, and not one has offered me a fixed monthly direct debit payment - every single one was either full or minimum only.

I have a feeling this option may have been available in the past, but not anymore that I know of.

I think Egg offer it because they require a DD to be set up in the T&Cs, while with other companies you could choose to pay a set amount manually and not set up a DD

benrashton

Your best bet is to set up a standing order with your bank. Do it online if you have that set up.

benrashton

Set your DD to go before your standing orders and that shouldn't confuse anything. Althought I dont see how a standing order to the same credit card would affect the DD. Even if it stopped it the standing order is still a payment.

izools

I pay my Barclaycard by Weekly standing order.

This has the following benefits:

1. I am in control of the amount
2. It doesn't matter if the statement date changes because as long as one or two of the weekly payments fall into a statement period the minimum has peen paid, and they inevitably will being weekly
3. As interest is calculated daily (applied monthly), paying say 4x £15 every Friday over the course of 28 days will result in less interest being applied than 1x £60 after 28 days.

Go with that, it's always worked for me!

stressfreedan

Thank you everyone for all the fantastic help and advice Really appreciated...standing order now setup

Dan

Arthritic_Toe

benrashton wrote: »

Set your DD to go before your standing orders and that shouldn't confuse anything. Althought I dont see how a standing order to the same credit card would affect the DD. Even if it stopped it the standing order is still a payment.

The reason it affects it is that if you have set up a DD for the min payment, and you have already made a payment for more than the min, the minimum payment due is now 0, so they wont take a payment via the DD.

CannyJock

Arthritic_Toe wrote: »

The reason it affects it is that if you have set up a DD for the min payment, and you have already made a payment for more than the min, the minimum payment due is now 0, so they wont take a payment via the DD.

Some do, some don't. Some it depends if the additional payment is within X number of days of the DD being submittted.

Always check with your specific card provider - on something so important, phone the number of your card, don't rely on forum advice

calibrax

stressfreedan wrote: »

Main reason is that I'll be applying for a re-mortgage at some point in the next six-nine months, so paying £150 would reduce my credit card debt by about 25-30% by then? Am I right in thinking this would look better on the credit record?

Nowadays the credit record does show if you are only making minimum repayments, and that can count as a negative. However, it also shows if you are on a promotional rate, and if you are then the fact that minimum payments are being made should not affect your rating.

speedbird1973

Santandar do adjust your DD if you pay off the minimum by Standing Order. I've not yet had a DD collected, but at least if I forget then the DD will save me!

MBNA will take the DD regardless of interim payments (which I prefer to be honest)