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Using standing orders rather than direct debits

Christopherrobin
Christopherrobin Posts: 8 Forumite
in Credit cards
Hello

I have fallen into a rut with just paying off the minimum payment on my credit card each month and would like to set a standing order up each month to pay a little more. I have four cards none of which I spend on anymore and I want to set the payment up for the 1st of each month.

My Direct Debit dates vary from the 3rd of the month to mid month. I am scared in may get late payment charges because the statement date changes for example.

Comments

  • thebritishbloke
    thebritishbloke Posts: 1,472 Forumite
    Who do you bank with? A lot of card companies will allow you to set up your direct debit to take a specific amount each month. Having a direct debit prevents you from running the risk of the payment not clearing by the due date.
    Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.

    ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Christopherrobin wrote: »
    Hello

    I have fallen into a rut with just paying off the minimum payment on my credit card each month and would like to set a standing order up each month to pay a little more. I have four cards none of which I spend on anymore and I want to set the payment up for the 1st of each month.

    My Direct Debit dates vary from the 3rd of the month to mid month. I am scared in may get late payment charges because the statement date changes for example.

    Keep the Direct Debit for the minimum in place and set up a Standing Order to pay extra or pay extra by online banking as and when you can.

    If you really want to pay by Standing Order only, pay it well in advance and take in to account Bank/Public Holidays and weekends.

    Some credit card providers allow you to set a set amount Direct Debit. Santander is one.
  • jackieblack
    jackieblack Posts: 10,570 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    SnowTiger wrote: »
    Keep the Direct Debit for the minimum in place and set up a Standing Order to pay extra or pay extra by online banking as and when you can.
    This ^^^ is exactly what I was going to say :)
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  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    I'd agree with SnowTiger's suggestion, but if you really want to give up on the DD I would go with manually making the payment through your Online or Telephone banking on a date that fits with the payment date on your statement rather than using a Standing Order.
  • Naf
    Naf Posts: 3,183 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    SnowTiger wrote: »
    Keep the Direct Debit for the minimum in place and set up a Standing Order to pay extra or pay extra by online banking as and when you can.

    If you really want to pay by Standing Order only, pay it well in advance and take in to account Bank/Public Holidays and weekends.

    Some credit card providers allow you to set a set amount Direct Debit. Santander is one.

    This is good, but with one proviso; some companies will treat any payment received between statement date & payment date as going towards the minimum payment, and will reduce the direct debit amount accordingly. So just make sure you get the date right or you'll end up not making the extra payments that you think you are.
    Never argue with stupid people, they will drag you down to their level and then beat you with experience.
    - Mark Twain
    Arguing with idiots is like playing chess with a pigeon: no matter how good you are at chess, its just going to knock over the pieces and strut around like its victorious.
  • lottie3000
    lottie3000 Posts: 449 Forumite
    If I pay more off of my Halifax Credit Card by a certain date then they cancel taking the DD for the minimun payment that month.
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