Big Fat WARNING about credit cards

AzimScot

when doing these 0% for 12-18 months always always set up a direct debit and it will go out automatically 3 days before due date always select min pay at least if you cannot afford more and then make extra payments ontop of it. The DD ensures you wont get the £12 admin fee or interest charges slapped on plus companies love direct debits and if you have one they willing to refund you for any errors because you have one. DD are favourable having worked for LTSB.

chattychappy

AzimScot wrote: »

when doing these 0% for 12-18 months always always set up a direct debit and it will go out automatically 3 days before due date always select min pay at least if you cannot afford more and then make extra payments ontop of it. The DD ensures you wont get the £12 admin fee or interest charges slapped on plus companies love direct debits and if you have one they willing to refund you for any errors because you have one. DD are favourable having worked for LTSB.

These threads always provoke a suggestion that a DD should have been signed. The problem is, if the customer doesn't have the money you risk having the same problems but with even more charges on top. Also DD behaviour is non-standard if you make additional payments.

In the end, people who are "on top of things" can do without DDs, but may well prefer to use them. People who are not on top of things will get into a mess - whether or not they have a DD. In particular, they encourage non-checking of statements - so the mess may build up for longer before being noticed.

So certainly not "always always", whether or not favourable on the basis of being a LTSB employee.

stephane_2

All your fault....accept your mistake...pay it and learn from it...

sharpy2010

stephane wrote: »

All your fault....accept your mistake...pay it and learn from it...

Correct, but not particularly useful or helpful advice.

stephane_2

sharpy2010 wrote: »

Correct, but not particularly useful or helpful advice.

Neither you.....

dtaylor84

willniznos wrote: »

3 months passed before I even noticed,
[...]
after being such a diligent customer.

Er? I think a diligent customer would at least check their statements once a month!

chattychappy

dtaylor84 wrote: »

Er? I think a diligent customer would at least check their statements once a month!

Also it's usually part of the terms and conditions that you do check statements.

gwapenut

I hate the "I messed up and they didn't change my nappy for me" brigade as much as anyone but I think the comments towards the OP are a little harsh here. It's quite an easy mistake to make when dealing with recurring payments. You monitor it for a while, then relax, then something goes wrong later. I remember my first such mistake on aregular savings account, making payments on the 25th of the month. Missed the february payment one year when it fell on a weekend. Since then, I've been very diligent. But I do think the OP has good intentions and is trying to do something constructive with his experience. You guys may all be savvy and diligent, but not everyone is and the OP's warning will help some people. Direct debits in themselves are not the solution as he was trying to overpay, but I think a minmum payment direct debit is an essential safety net for any credit card account - extra payments are then optional.

Fiddlestick

gwapenut wrote: »

Direct debits in themselves are not the solution as he was trying to overpay

No reason why he couldn't set up a direct debit for the minimum then make an additional payment once that has cleared.

cyclura

agree with fiddlestick, thats what most people do that want regular payments coming out of their accounts automatically. You have a minimum set up, once your minimum has gone out you just add more in a payment/fater payment/over counter if you have it spare. Theres a big difference between a standing order and a DD and I think that may be where the OP got in the pickle in the first place. I use standing orders for things that do not have a payment due date and DDs for things that have to be paid by a certain date but changes on a regular basis (eg credit cards).

Hopefully others will read this thread and not make the same mistakes