Paying off CC in full

jameslon

I am reaching the end of my 6 month stooze (ends 28th April). I would like to pay off the balance in full (up to now DD taken each month for min. amount.)

However, the statement confuses me a bit. The statement date is 29 March. The min. payment is to reach the account by 25 April.

The wording on the statement states:

D/D payments to be taken from bank account on 25/04/05. Credits received 4 clear working days before this date will reduce/clear entry.

So, if my current balance is X, and my min. payment due is Y, how do I ensure that I totally clear the balance and incur no interest post 0%?

1) need to ensure I have paid off X-Y by 19/04/05, with Y paid by DD on 25/04/05
2) need to ensure I have paid off X by 19/04/05, with Y paid by DD on 25/04/05 (leaving a credit of Y)

I do not wish to incur any interest whatsoever!

Any help appreciated, thanks.

BrightonLad

hi. i think what it means is that the minimum payment will be taken on 25th by DD, but if you make an additional payment by 19th, then the DD amount will reduce by that amount.

so say min payment was £100 to be taken on 25th, if you made an additional payment by the 19th of say 40 then only 60 would be collected by dd on 25th.

so if you want to pay off total balance, i would suggest doing it before 19th then no dd would be taken.

hope it helps

what card is it anyway??

jameslon

Thanks for the reply.

The card is a Lloyds Platinum (6 months at 0%).

I think though that the min. payment. amount stated is taken irrespective of any other payments made to the card - its an automated DD - but I might be wrong..

Any other views?

BrightonLad

jameslon wrote:

D/D payments to be taken from bank account on 25/04/05. Credits received 4 clear working days before this date will reduce/clear entry.

this is the bit that means that payments received by 19th will reduce dd amount by that much.

i have the same card, my 6months is 16th june, so i'll probably BT to another card to continue getting 0%.

Egg also has the same procedure for reducing the dd amount by whatever additional payments are made before the dd date

carl310166

The DD will be taken automatically.

Look to see how much the DD is for,then repay the balance minus the DD amount.

If you want to 100% certain,ring the Card Company to find out the balance on the day the DD goes out,you could make a payment over the phone if your calculations are out.

Milarky

If you make the 'X-Y' payment before 19th this will obviously 'reduce/clear' the scheduled DD minimum payment on the 25th. In other words, the minimum payment would not be taken as a result and you would be left with a balance of 'X-Y' plus a small bit of interest on balance 'X-Y' [but only running from 25th]

Alternatively, if you pay 'X-Y' to arrive as close to the 28th [which you say is the end of your promotion peiod] as you can manage [eg sending payment on Tues 26th] the DD minimum payment will still collect and take the difference you expect it to and you also maixmize the time available in which to stooze.

The Final option is to ask now for the madate to be switched from Min to full balance payment [assuming they will do this] in which case you'll pay no interest and keep the money up until 25th [1 day less] provided, of course, that you are ready to repay the full balance from funds sat in your bank account.

RobinRussell

I would just pay full balance, and cancel direct debit in online banking.

johnllew

RobinRussell wrote:

I would just pay full balance, and cancel direct debit in online banking.

Careful - if you cancel a DD and they try to draw on it, could result in a charge for non-payment. Read the T&Cs first.

steveb1967

my 2 pence is keep the cash, stooze it, there are over 20 credit card companies on this site that you could apply for online with an instant decision and carry on. :-)
all the best
steve b

JasonW_2

Id rather pay a few £ more than the DD amount so that you dont leave even a few pence on the card! My understanding is, you are going into your standard APR rate on the card, so if you dont clear every penny of the balance, you will get charged interest on the whole balance before the payments were made! Obviously you dont want that, so Id get the card in credit and either buy something cheap or ask for the credit back. They will either send you a cheque or reverse the DD for the amount back into your bank.

J