Moving my D D's to the end of the month

hugh2908

Hi all
im after a bit of advice, im considering moving my dd's from the 1st of every month to the 28th of the month , after paying all the dd on the 1st i have money over for food, fuel etc until the next pay day i.e the 28th of the month at this time im up to my overdraft limit £1000, i was thinking that if i move the dd's to the 28th but do not spend the money, that i would effectively be paying my dd's a month later with next month's wages and thus getting rid of my overdraft.

does this sound correct ??? have i missed something ???

regards

H

bottleofred

Hi Hugh,

I also did something similar to this many years ago and while it was successful for a while, I had so many payments coming out and was such a disaster with money, that it eventually failed for me. One thing I would say though is that I never changed it so dramatically timewise (I changed by maybe 2 weeks!). I do hope it solves your current problems though. You could consider posting your statement of affairs to see if we can save more money! http://www.makesenseofcards.com/soacalc.html

Good luck

gizmo111

But you'll effectively be in arears with everything by 1 late payment.

hugh2908

how would i be in arrears ???

from my understanding the direct debit would still be paid in the same month however it would be paid with next months wages effectively.

or am i missing something ???
H

boblardo

It's worth bearing in mind that when changing the payment date of direct debits two things can happen

If you cancel the existing direct debit on the 1st then contact, say Sky then it may take 4-6 weeks to get the new direct debit set up so you may be in arrears by one month

Secondly, and i will use sky as an example again. If you move direct debit dates then the amount they bill you may change. They may bill you for the services between 1st & 27th and then the 28th to the 28th meaning a higher payment on the 28th

Hope this helps

bottleofred

Hugh,

Boblardo could have a point, but the best thing to do is talk to each individual company and guage their response regarding the possibility of being in arrears. As I said earlier, I only changed by 2 weeks and it didn't affect me, but it's worth making sure.

gizmo111

hugh2908 wrote: »

how would i be in arrears ???

from my understanding the direct debit would still be paid in the same month however it would be paid with next months wages effectively.

or am i missing something ???
H

If your bill is due on a certain date and you miss it eg credit cards, mortgage, loan, rent etc then you will paying past the due date and will constantly show as a missed payment.

facing_up_to_it

Hi there, I did what you're thinking of with British Gas for both gas and electricity direct debits as follows -
1) Paid 25th March
2) DD's due 15th April
3) DD date changed to 28th April ( still within same due month )
4) Paid 25th April
Result was that I 'saved' £141 from March wage by changing DD date.
It did not register as a late payment because the payment was still taken in the same month it was due although out of a different salary! Hope that makes sense.
I think it can work it just depends on the creditor and the timescales you're looking at. I've not done it with anybody else but British Gas were fine.
Best of luck x

themull1

Does that not only work once tho? i can't get my head round it.!!

facing_up_to_it

Yes, it does only work the once.:)

happytails

Another thing to add. Say you have your wages go in on the 1st say and this puts you in plus figures with your overdraft in mind. Then all your DD's go out the following day (2nd) pushing your balance into negative figures (into your overdraft) and thus you stay for the rest of the month....getting charged interest for being in your overdraft by the bank...

If your wages came in on the 1st but the DDs did not come out until the 30th, your account would have money in it for longer/more likely to stay above your overdraft and therefore you would incur no or less interest for being in your overdraft.

Does that make sense? Think i have that right. Our overdrafts charge us for per day we are in our overdraft - hoping my frazzled brain is right - can someone confirm?