Balance transfer as monthly payment?

petebates26

Hi all,

I've just completed a balance transfer from a Barclaycard to a Nationwide card.

There is still an outstanding balance on the Barclaycard.

The Barclaycard website says 'Payment - Thank you' in relation to the balance transfer and my minimum payment due (that is due on 06 June) has gone down to £0.00.

Does this mean that the balance transfer has been treated as this month's payment, and my direct debit will not be taken this month?

Thanks

chattychappy

Yes, balance transfers are treated as a payment received.

But I can't answer the DD question as I don't use DDs. I know there is a point beyond which it can be too late to stop them going ahead.

donnap83

Ahhh, I was just about to post the same question!!

I've just done a BT from Capital One to Barclaycard. I am due to make a payment this week to cap one. As I did the BT, does this mean I don't have to make an additional payment? I cancelled the DD so i don't have that to worry about

petebates26

Thanks Chattychappy - I thought it looked like that on the statement. I'll keep an eye on the direct debit and see what happens when it's due out!

JimmyTheWig

No reason why you can't make a manual payment anyway. The quicker you pay the less interest you'll waste.

petebates26

True enough Jimmy - that's my plan.

I just didn't want to go ahead and make the payment if the DD was going to come out as well - it would leave me a bit short!

Jigga

I haven’t tested it with Barclaycard, but from my experience two months ago with Egg, I made a BT that didn’t settle the balance and they still took the DD additionally after this payment.

Best course of action if you are concerned is to phone up Barclaycard and see how they treat it.

Egg is the only card that I have a DD with and in line with Chattychappy, previously all other cards have treated a BT as the acceptable payment for that month.

donnap83

petebates26 wrote: »

True enough Jimmy - that's my plan.

I just didn't want to go ahead and make the payment if the DD was going to come out as well - it would leave me a bit short!

Cancel the DD if you have enough time, and ring them up to check that they will count the BT as a payment. Better safe than sorry. Think i'll ring capital one to double check. I know what you mean about it being a tight month :eek:

chattychappy

I would be wary of cancelling a DD with a bank rather than the CC. If the CC attempt to take it and it is rejected, there could be charges.

Probably that was not what was meant, but just in case!

IMHO, anybody who is paying interest should seriously reconsider whether they really want a DD. Without a DD you can manually pay as much over as you can as soon as you can. With a DD you always have to consider the interaction between manual payments and the DD going out. This could mean you pay later than you need to and incur more interest than is necessary.