£1 per day query

mrsmccat

Hello all,

Could anybody please tell me a bit more about the concept of paying several small amounts towards credit card repayments? I have seen it mentioned lots on here but haven't done it myself and am not sure I totally understand, and now can't find a thread specifically about this from searching the forum.

Can I just clarify, do you do this at any time regardless of statement dates and just ensure that at least the minimum payment has been reached by the due date?

I am about to start my snowballing with a vengeance to get rid of my card balances and just wondered whether I am allowed to make multiple payments towards my cards within the same month or not if I happen to have a little money left over or had an unexpected saving one day.

I usually make payments by Faster Payments through my online banking, are the CC company likely to get a bit narked at receiving loads of payments in any given month?

Advice from anybody who does this would be much appreciated!

Thanks :-)

Kepp

Hi Mrsmccat

The PAD (Payment a Day) thread can be found here

Not sure whether the CC companies are annoyed by the many small payments or not, however, they cannot stop you

It's a great way to keep sending that little bit extra to your debt every day and it really does add up

TeamNicholson

It wont make any difference to them. Its all automated allocation of payments so shouldn't bother them. Most people make the small additional payments AS WELL as their minimum payment, but I suppose as long as you make sure all payments add up to the minimum before the due date that would be fine, but seems a bit pointless with more room for error and late payment fee's etc.

I have a DD set up for the minimum so I know its always paid and on time and I then make extra payments of a few quid here and there via internet banking.

HappyMJ

I would get a bit narked if I (as a company or business) was the recipient of £1 a day as my bank would be charging me for every payment received. Only a few pence but it all adds up.

Personally, I would on pay day allocate and spend everything you get so you have nothing left. You will save the most amount of interest that way. Then during the month stick to the allocations and try and reduce them. i.e if you estimate you will spend £200 a month on shopping/groceries etc then try and reduce it and at the end of the month the day before you are paid then allocate everything you have left in your pots to the credit cards and reduce the estimates for the next month.

mrsmccat

Wow, really informative responses and so quick too, thank you everybody!

I will take a look at that thread, thank you Beccie :-)

Because I will be snowballing I will be making the payments I have allocated to repaying the cards as soon as I get paid each month, I have never ever missed a payment deadline yet (thankfully) so I certainly don't intend to start doing that now!

I was just hoping to go better than that and paying any additional funds I could spare sporadially during the rest of the month after other expenses, I probably didn't explain that very well! For example if I budgeted £30 for my grocery shop but only spent £27 because of unexpected savings then could I send a faster payment to the credit card for the £3, rather than leave it in my current account.

I'll give it a go anyway and see where I end up - hopefully those little £s here and there will make a big difference to my overall finances and mean my DFD is here that little bit sooner!

Thanks again. I think this is such a great site! It is so helpful to get other people's perspectives and learn from others.

Time_to_face_the_music

Hello mrsmccat and beccie :hello:

We have decided this week to try and make a small extra payment each day so you two have inspired me to join the PAD thread :T

Because we are on a DMP, we are just going to pay the odd pence in our bank account each day but we hope it will add up and make a small difference to our debts each month :j