Making Over Payments

mylastpound

Hi All

Quick Question re: Overpayments on CC

i have a DD set up for each of my CC for the min Payment that comes out around the 2nd week of the month

but i would like to make over payments the day im paid, so any left over money from the month before can go on over payments

If i made an overpayent on the 1st week, would it affect my DD for the min payment coming out in the 2nd week?

i was told by one CC that it would - but i see people on here always make over payment

Any advise very welcome

cheers

rising_from_the_ashes

Yes it would - as it'd be paid before the DD had come out - and if it was less than the min you may end up with a problem

However, if you paid the extra amount, plus the amount due to come out in the DD (the min amount) then the DD wouldn't also be collected (hope that makes sense)

Alternatively, wait until the DD has come out and then pay the extra amount

ETA - the above assumes the next monthly statment has been produced - if still within the current month, then it shouldn't have an effect but IMHO a bit risky to do if it's really close to the cut-off dates

mylastpound

rising_from_the_ashes wrote: »

Yes it would - as it'd be paid before the DD had come out - and if it was less than the min you may end up with a problem

However, if you paid the extra amount, plus the amount due to come out in the DD (the min amount) then the DD wouldn't also be collected (hope that makes sense)

Alternatively, wait until the DD has come out and then pay the extra amount

ETA - the above assumes the next monthly statment has been produced - if still within the current month, then it shouldn't have an effect but IMHO a bit risky to do if it's really close to the cut-off dates

Thankyou for your advise - i though that may be the case

i will move any remaining money to my other account untill the min DD have come out and then il make an overpayment for these at the end of the week the dd have already been taken

thankyou :beer:

rising_from_the_ashes

TBH you'd be better paying the extra & the min amount before the DD comes out - as this will mean a higher payment has been paid that month which will mean less interest to pay the next IYSWIM.

Just to confirm, if you pay more than the minimum by the due date on your statement then the DD will not also be collected (but bear in mind these can be "called" up to 3 working days before they're paid).

Sorry I'm not always the best at explaining things!

Eg, from my current cc statement - payment is due by 12th March (or the min will be collected by DD on that date) - as long as I pay more than the min by the 7th then the DD will not be collected.

There should be dates provided on your statement. HTH

ROSIEGLOW255

I would check with the credit card company as I paid Egg £100 per week (well above the minimum payment) thinking it would stop the DD coming out for the minimum payment but they still took the DD which left me out of pocket. It might be that different companies have different policies as I know other credit cards I have had have not collected the DD if I have already made at least the minimum payment.

neverbefore2011

You can make payments to your credit card any time you choose, they won't encourage it because it costs them profit

Use the DD to make sure you don't miss the minimum, but check with the card company to make sure whether additional payments will show as additional, or whether they will be deducted from the DD minimum

Credit card companies gain nothing from over-payments, it costs them!

Mort

How about changing the minimum payment DD to a standing order then your additional payments and the minimum payment will definitely go.

May not be a good idea if you are still spending on the card though as the minimum would go up.

mrsb83_2

If you're not using the card and are on top of your repayments to it, then consider cancelling the monthly DD. I did this because I was making a lot of overpayments and my CC cycles and payday didn't match up, so I started making payments a lot earlier than the due date. This saves on interest, too.

Obviously you need to be 100% sure that you will make payments on time.

I've now cleared my credit cards and use one for petrol only but I still don't have a DD because it's part of my monthly budgeting to pay towards that CC at the appropriate time.

When I was in trouble, DDs saved me many times, but when I had a bit more control then I found it best to go without.

MoneyMagic01273

mylastpound wrote: »

Hi All

Quick Question re: Overpayments on CC

i have a DD set up for each of my CC for the min Payment that comes out around the 2nd week of the month

but i would like to make over payments the day im paid, so any left over money from the month before can go on over payments

If i made an overpayent on the 1st week, would it affect my DD for the min payment coming out in the 2nd week?

i was told by one CC that it would - but i see people on here always make over payment

Any advise very welcome

cheers

You need to check with your specific credit card company regarding interim payments and whether your regular Direct Debit amount will reduce to take them into account or not.

Some credit card companies do lower the amount collected by DD to take into account any other payments you may have made. However some companies (such as Amex, I believe and possibly some others) do not. Depending on the CC company, it is possible that once your statement has cut, the minimum amount shown on the statement will be collected irrespective of whether you make an additional payment before the DD date.

Give them a call and they should be able to tell you how they handle that for your specific CC.

bouncydog1

HSBC and others allow you to make a fixed payment amount by direct debit, rather than a minimum payment amount.

Which provider are you with? Does it offer this option? If so, work out how much you want to pay going forwards and then see your balance come down by a fixed amount each month, without having to faff about with min payment DDM's and top ups!

You could elect to pay by standing order, but there is always a danger with some card providers that the date the payment is due changes each month and you could be caught out by making two payments in one month, none in the next and getting a late payment charge.

camuk81

My last pound, I have done as suggested above and the only person who did fixed payments for me was Aqua.

I check it my with a spreadsheet and over pay and check online to make sure its there. I have a set Standing over for over the minimum amount. Which I work out i.e. if its barclay they ask for 2.25% of the payment so I took the total limit divide by 100 then times by 2.25.

I then got very geeky and worked it out by month.

So far its worked great 3 months in and my interest in dropping and so is my balance. One thing to point out is make sure you check payment dates. I pushed mine forward so say the statement is on the 15th and I have to pay on the 5th, I pay the amount when I get paid (the 22nd) to avoid any hassle.

I can then overpay by logging onto the bank and making adhoc payments, they are sometimes know as automated bill payments and most banks are very happy to set this up.

In fact as soon as guaranteed money is coming in I have these set up! a great example is when my £20.30 from benefits comes in I put in the calendar and it comes in and goes out without me really seeing it to spend it.

check with the card provider and as bouncy has pointed out and make sure the first payment be it standing order or adhoc payments goes through i.e. just do a penny to start off with. That way you can test its got there!