Setting up direct debit

chriz1

I have a tesco credit card, the min payment each month is £25 I plan on keeping the CC balance paid off full each month with manual payments with DC but don't want to set one up for full amount in case I do want to carry a balance over one month if things get tight.if I setup a DD for min amount £25 will they still take the £25 every month even if the balance was £0

Ebe_Scrooge

Just set up a DD for "The minimum amount". This will vary from month to month, depending on the outstanding balance ( they all differ slightly, but it's usually along the lines of "5% of the balance plus any interest and fees" ). They will then take the minimum amount, removing the risk of any late payments, you are then free to make an additional payment as and when you want.


<edit> You can set up a DD for a fixed amount if you want, but if this turns out to be less than the minimum payment for that month then you'll be hit with late payment fees. There is no set minimum payment, it's based upon a percentage of the outstanding balance.

20aday

I've got a Tesco Bank credit card and I find if I make manual payments above the £25 minimum monthly payment then the Direct Debit isn't taken when it's due.

If you're disciplined enough (and earn interest on credit balances on a current account) then you could 'save' the money back and pay in full before it's due (to avoid any late payment fees/interest).

chriz1

So as I understand it,
I can setup the DD for £25 (min payment) this is just for a safety and in case I do want to carry a balance on at some point.
But generally I will be paying it off before the due date maybe a few days before. Therefore the DD amount would not be taken..correct?

Also would a debit card need a few days in advance to pay or can they see a payment is coming through even if it hasn't reached them by due date

bengal-stripe

chriz1 wrote: »

But generally I will be paying it off before the due date maybe a few days before. Therefore the DD amount would not be taken..correct?

A DD will need several days to be in place with your bank. Hence DD can no longer be adjusted 4 or 5 business days before the payment is due. Use that window to place your payment.

chriz1 wrote: »

Also would a debit card need a few days in advance to pay or can they see a payment is coming through even if it hasn't reached them by due date

Payment by Debit Card will need 3 or so business days to clear. Your best bet is Faster Payment bank transfer. It will arrive same day or the latest next business day. You find the card's account number and sort code on your statement. Reference will be your 16-digit card number. You can set up a transfer days or weeks in advance to leave your account at a specified date. So you cannot forget it on the day in question.