Got the £ and want to fully pay-off credit cards. Best way?

UK_DUDE

Hi. I have a couple of credit cards that I want to pay off fully. I've just got my loan and want to pay off my balances and then cancel my credit cards.

Whats the best way to do this? Ring up each one and then clear them using my debit card? Will I be liable to another payment at the end of the month.

The dates for my credit card monthly direct debits fall on the 14th, 18th and the 26th of the month. I don't want to pay them off fully over the phone and have 3 direct debits come out of my account next month. That would put me in some difficulty.

Can someone please tell me the best way of doing this.

Thanks.

MoneyGirl_2

If you have online banking, you could send by BACS (usually called bill payments for consumers), takes about 3-4days to get there. Just remember how ever you pay them all off, check next months statement for any remaining interest that needs to be paid off and pay it straight away.
The details for paying from online banking should be on the back of the statement for each credit card. Sometimes the online banking systems have these details already programmed in so you just choose by name.

It'll be a good idea to call each one for a current balance, some have automated systems. Not all of them accept a debit card payment on the phone.

UK_DUDE

Ok thanks for that.

Yes I have online banking with Abbey. Will Abbey be able to do BACS? How does BACS work? Even if I pay them off full will I be liable for interest next month? What if I pay them all off by the end of the month can I dodge the interest?

CLAPTON

Pay them as soon as possible so paying as little interest as possible by whatever method suits you and is allowed by the CC. Payment methods are on the back of the statement.

You will have to pay some more interest in next months bill .. no real way of avoiding that.

MoneyGirl_2

A BACS payment with Abbey will probably be an option in your online account marked, pay a bill, or something similar. The details usually required are the account number of the credit card company, that is THEIR bank account number, not YOUR credit card number as you are paying it to them, their sort code, and a reference number, the reference is where you put YOUR credit card account number or Credit card number, and finally the amount you want to pay. Click Pay and Confirm Payment and away you go (might differ with Abbey). The details will be on the back of your credit card statement though so look at those rather than rely on the above.

BACS is simply a one off electronic payment, bank to bank. CHAPS is another option which is paid on the same day, but that usually costs about £20 or there about.

As mentioned you most likely will have to pay some interest on next months interest if you are already paying interest on the balance, that is why I say to make sure you check next months statement as well to ensure it's all paid.

UK_DUDE

Hey thanks.

I'm thinking about just ringing up and saying can I pay my full amount next month in my direct debit. Will I be liable for more interest like that?

mintymoneysaver

Thequicker you pay it off the less interest you will incur.

johnllew

Debit card is usually quickest (other than cash at the counter) if they allow this method of payment.

TheGrant

Can you not ask for a Closing Balance anymore? Or do they now squeeze interest out of you for every second?

In the past I've called them up and asked how much they want? They've said if you pay £nnn.nn by DD/MM/YY (about 5 days or something) then we are clear.

Of course, that was back in the day.

UK_DUDE

A closing balance? that sounds just what I'm looking for. Do the big CC companies still do this?