3 Different types of direct debit

dazzaofdagenham

grumbler wrote: »

Anything wrong with online payments?

No not at all....

But I was just trying to express the fact that if I was in town and at that stage it would be simple just to walk into a branch ( if no que ) and make a extra payment

m4rc

dresdendave wrote: »

In which case it would suggest they are using a CC to live beyond their means. Posting an SOA on the DFW board would be a sensible step for anyone in this situation before their debts spiral out of control.

Really? So spreading the cost of something over a few months is seriously bad and I need to get financial help? In many cases that may be the case but that's a bit of a catch-all statement, I have an income that is well above average, I COULD wait a few months everytime I want to make a larger purchase, or I could use a credit card and pay it off when I want. That doesn't mean I am struggling with debt, I don't currently have any debt.

It's not bad advice if someone is in financial difficulties, but it's not good to generalise and assume anyone who wants to spread a cost must be close to bankruptcy. If nobody could spread the cost not many new cars would be sold in this country that's for sure!

grumbler

m4rc wrote: »

Really? So spreading the cost of something over a few months is seriously bad and I need to get financial help? In many cases that may be the case but that's a bit of a catch-all statement, I have an income that is well above average, I COULD wait a few months everytime I want to make a larger purchase, or I could use a credit card and pay it off when I want. That doesn't mean I am struggling with debt, I don't currently have any debt.

Do you not have any savings? If you do, does it not make more sense to use them for "a larger purchase" instead of paying interest to the CC? If you don't have savings, then you have to save in the first place instead of making "a larger purchase".

... If nobody could spread the cost not many new cars would be sold in this country that's for sure!

For good. Very good cars with low mileage get sold for peanuts or go to scrap.

m4rc

grumbler wrote: »

If you don't have savings, then you have to save in the first place instead of making "a larger purchase".

'Have to'? Because you say so?

If I choose to buy something and pay a little interest that's my choice. I have savings but the larger amounts are not instant access, you don't get the best rates by keeping your money in an instant access account or under a mattress - but you know that really don't you. Sometimes it's just more convenient for me to buy something there and then, and I'm fortunate to be able to pay it off - my income is guaranteed so I don't have a risk of losing my job (well more guaranteed than income from a job or benefits anyway, of course anything could happen and nothing is really guaranteed except death and taxes). I know this isn't the norm, but it's how it is for me.

And I don't disagree about cars, there are lots of bargains around, I have never got my cars on finance, I was using it as a good example of people using finance. Personally I think buying a house falls into the same category, sure there are nice low interest rates at the moment but I clearly remember when the rates got scary, and there is no reason why they won't again. I have friends who were paying for a house for many years only to be repossessed and it was all for nothing, basically the same as renting but more traumatic. If your argument stood up nobody should have a should Dave up until they could buy a property wi cash, and in most cases ats just never going to happen.

grumbler

m4rc wrote: »

'Have to'? Because you say so?

No, I am not the only one. However, you seem to have savings, so what's your point?

If I choose to buy something and pay a little interest that's my choice. I have savings but the larger amounts are not instant access, you don't get the best rates by keeping your money in an instant access account or under a mattress - but you know that really don't you.

I know that many people are getting 5% on pretty big amounts with instant access. And I don't know fixed rate deals offering more unless it's some sort of a more risky investment, but I am no expert.

And I don't disagree about cars, there are lots of bargains around, I have never got my cars on finance, I was using it as a good example of people using finance.

Well, it's not a good example. It's a common delusion that one can afford a car (iPhone, ... - you name it) simply because the monthly payments are 'affordable'. IMHO it's just stupid to buy a sofa on a finance unless its @0%, although for many people it's "a larger purchase".

That said, pretty good leasing deals are not uncommon for cars, that are in fact some sort of finance.

Personally I think buying a house falls into the same category, sure there are nice low interest rates at the moment but I clearly remember when the rates got scary, and there is no reason why they won't again. I have friends who were paying for a house for many years only to be repossessed and it was all for nothing, basically the same as renting but more traumatic. If your argument stood up nobody should have a should Dave up until they could buy a property wi cash, and in most cases ats just never going to happen.

Well, for houses there are fixed mortgages, and generally yes, it makes sense to buy it only if the mortgage (interest) costs you less than renting, not because you gamble on the price going up. You know well that in many countries renting is more common than owning, possibly because, indeed, mortgage is a risky business, even if the rate if fixed.

No_6

Getting back to types of DD's

If I have a promo rate on a card, I only pay the min by DD,
never any extra.

If it is normal spending card, for cash back etc then paid in full by DD.

Never had any problem with gaining new cards for 0% purchase or BT's

Superscrooge

No_6 wrote: »

Getting back to types of DD's

If I have a promo rate on a card, I only pay the min by DD,
never any extra.

If it is normal spending card, for cash back etc then paid in full by DD.

Never had any problem with gaining new cards for 0% purchase or BT's

That's exactly what I do.
I also have never had problems getting further 0% cards, although I never take it for granted.

chattychappy

planteria wrote: »

agree with Candy.. i've never been concerned by 'minimum payment markets' and i don't believe they are something anyone should care about.

I think "minimum payment markers" are in the same category as "cash advance" markers.

The ability to pay the minimum or draw cash are both features credit credits. Doing either is hardly in the same category as missing a payment which is also marked.

But the markers are there for a reason - I believe they are never positive. I expect they are negative when taken with other factors - eg close to limits or when both happen at the same time - ie drawing cash when paying minimums only. Promo offers are usually marked too - so perhaps a minimum marker is not seen as negative when a promo is in place, but is otherwise. Or perhaps a minimum marker is only negative when it happens every month.

I draw alot of cash, because for me it's the cheapest way of getting cash abroad. To avoid doing this would cost me more. So I draw cash.

I don't use DD. When I have a promo runnng, and say, my minimum is £223.89, it's just as easy for me to send £225. So that's what I do. No skin off my nose and it avoids something that might be negative.

If if you're on DD - then it's tricky. If your DD just pays the minimum, then for many CCs if you send an extra £1, the DD will simply adjust itself so you'll still end up paying the minimum. If you like DDs, then I probably wouldn't worry about the "minimum marker" if you're well within you limits, not drawing cash and on a promo deal.

No_6

All my credit reports have shown that I am on a promo and I have been paying only minimum payments, until I clear the debt.
Then it shows as settled as I have closed them.
No probs with getting other deals either