Credit card help- pay off

in Credit Cards
4 replies 481 views
DD2580DD2580 Forumite
20 Posts
Fourth Anniversary 10 Posts Combo Breaker
Hi guys I need some advice.

I have a few 1,000 on a credit card apr is 6% (Barclays - this was 30% until they recently brought it down)

My question is: I have a direct debit that comes out auto each month. But when I have spare money I put it on the card to try and get this clear quicker. So right now I have £500 to put on the card but my next direct debit comes out on 3 aug - now does it make a difference when I pay extra on the card?! I just thought just pay as much as you can off and it will go down quicker. Help and advice please ?!

Before anyone says I should transfer to a 0% I can’t

Thanks all :j

Replies

  • madvickermadvicker Forumite
    156 Posts
    First Anniversary
    Yes it makes a difference. The interest costs are lowered from the moment you pay in the funds. It also won't affect the direct debit if you have specified the direct debit to be a set amount. If you specified it to take the minimum payment, then paying extra will stop your direct debit coming out.
  • DD2580DD2580 Forumite
    20 Posts
    Fourth Anniversary 10 Posts Combo Breaker
    Ah I see thank you.

    So when is the best time to pay off extra ? Just after the direct debit?
  • madvickermadvicker Forumite
    156 Posts
    First Anniversary
    The best time is now. The barclaycard website will tell you after you've paid if the DD will still go out or not.
  • chattychappychattychappy Forumite
    7.3K Posts
    ✭✭✭✭
    Yep... once you are into the paying interest game, it is best to pay as much as you can as soon as you can, but obviously making sure that the payments you make between statement date and due-by date total at least the minimum (ie don't send a big payment just before a statement is generated if it means that you won't be able to pay the minimum by the next due-by date).

    I don't use DDs, but if you do, you must understand how they interact with manual payments. In particular, there is no point in emptying your current account to make a manual payment if a few days later a DD fails for lack of funds and you incur charges.
This discussion has been closed.
Latest MSE News and Guides