Paying off 0% Credit Card before Offer Ends

johnny_c-l

Hi Everyone,

I used to be a regular lurker on this thread, but haven't visited for a while and am after some advice!

I have a Halifax One credit card which comes to the end of 0% on 5th October. Naturally, I want to pay the balance at the latest possible date before any interest will be charged.

My statement date is usually around the 7th of the month, and I pay the minimum amount by direct debit, usually around the beginning of the following month.

I was thinking that if I cancel the DD after the next one goes out on 3rd September, then pay off my September statement in full mid/late September then I should avoid any interest. Is this correct?

Am thinking of applying for the 0% HSBC, but hoping that a students income won't put them off!

Many thanks

jcl

Bokkens

If the offer period is at 0% until 5th October then you will not be charged any interest as you will have paid the outstanding balance in full .
If you paid all but a £100 and decided to pay that off a month later this £100 would attract one months interest.
This becomes slightly more complex if you have pick and mixed ,cash withdrawals,BT's and puchases during the 0% period and leave some of this debt on the card after the offer period as they all attract differing rates of interest.

YorkshireBoy

Personally, I never cancel my (minimum payment) direct debits until after I've closed the account down. After all, when you call to close accounts down with some providers they may offer you a special deal to retain your business. Keeping the DD mandate active saves you the trouble of setting up a new one if they persuade you to keep the card open.

If you do decide to cancel your direct debit with your bank, don't forget to notify Halifax as well at least 5 working days before they are due to collect.

When you send your final payment, ensure you allow time for it to clear onto your account before either a) they (attempt to) call the DD, and b) the payment due date, if you do cancel the DD. Details/timings will be on your statement.

YorkshireBoy

Bokkens wrote: »

If you paid all but a £100 and decided to pay that off a month later this £100 would attract one months interest.

Are you sure? I thought interest was charged on each transaction until you repaid in full.

exel1966

Interest would be payable on the full amount, not just the £100.