Direct Debits v Standing Orders

Stoneman_2

I have a few credit cards that are currently paid each month by DD and I would like to make additional payments each month.

I've seen some posts on here that state that some don't allow it or class it as the next months payment etc and you end up with late payments etc if you don't time the extra payment right.


I am considering changing them to Standing Orders, so that I can set the amount to pay.

I do pay my M&S card each month by SO and have never had problems, but was wondering if there was anything I should be aware of before changing them.

pauljoecoe

As long as you have a DD set up for your minimum payment that will be taken by the CC company each month. If you set up an additional SO then that will just be extra to your minimum payment so it shouldn't cause any problems.

The only problem with paying only by SO is that if the payment by date moves you could miss it with your SO.

rb10

Your credit card company may well be able to change the direct debit to a different amount, e.g. a fixed amount each month, or a percentage of the balance.

This is a much safer way to go than standing order.

I'd say - choose a fixed amount or % that you are happy to pay every month, and set the DD for this. Then, as and when you are able to, you can make additional one-off payments.

izoomzoom

I have a weekly SO set up. The sum of 3 weekly SO always exceeds the minimum amount due per month. Works for me.