Direct Debit and Wages question

helens25

Hi All! New to the site but I hope someone can help

I have no available funds in my current account (story of my life these days!)
I will get paid on the 15th of March - but I also have a Direct Debit due out on the 15th.
I cannot change the date of the Direct Debit.
My question is will my wages go in first and cover the Direct Debit or will the DD come out first and I will get stung for charges?

Thnaks in advance!

dzug1

Depends on your bank on the one hand and exactly how your wages are paid in on the other. My former employer had the policy that wages were available at the start of banking hours on payday - which meant they showed up as pending on the day before.

But if they are normal BACS and your bank says that DDs are processed first then you are stuck

balmk

Some banks require you to have sufficient cleared funds to cover the direct debit the day before payment is due.

Best bet is to contact your bank for advice - they may be able to offer a solution.

R34GTT

Depending on the company you have the DD with, an option of last resort may be to cancel the DD with your bank now and then call up the company and say you need to re setup your DD as you made a mistake in cancelling it. The company may then either ask you to pay by debit card or just wait until the DD is setup again. Though if this is with a credit card company be careful they don't charge you if a DD fails.

ironlady2022

You can cancel the DD for this month if you want to make utterly sure. Every bank works differently.

izools

If I were in your position, I would cancel the DD with the bank, and call them to pay by debit card on the 15th, and whilst on the phone, ask them to re-instate the DD again which will take effect from the following month onward.

I have done this several times in the past to avoid charges and it is certainly the much wiser choice to make vs. hoping for the best

MrPhoton

Will it just depend on the exact timing in which one of the two events occur first?

pmduk

MrPhoton wrote: »

Will it just depend on the exact timing in which one of the two events occur first?

Probably not, as several banks require you to have the funds available at the close of business on the previous business day.

OP it may be worth asking your bank for their procedure?