Final payment on BT

caveman38

Can someone advise on the procedure for paying the final payment on a CC with a BT. To avoid the problems some people have with DD's continuing after this period or cancelling too soon and incurring charges. I have decided to go the Standing Order route.
Assume I have only used the CC for a BT and that was for £5,000 with a fee of 2%, I assume my outstanding debt to that company is £5,100. If say the min payment was 3% and I set up a SO for £160 per month for 11 months.
How many days before the due date would you recomment paying that SO each month.
I would after 11 months owe the CC company £3,340.
Assuming I am right so far, how do I go about paying that outstanding balance at the right time to satisfy all the criterion for a 12 Month BT.
Thanks

sicker

caveman38. In my case I allow 7 days before due date for payment. I also set up 12 payments (using your example) of £160 BUT after the 11th s.o. has been executed I then edit the last payment (via home banking) to the amount outstanding.(£3340??)
Works for me. However I never use DD's, always standing orders.

Good luck

John

CLAPTON

if you use standing orders rather than DD then make sure you check your statament each month. some cards make you pay the full BT fee in one go so that months payment will be higher than the average.

YorkshireBoy

sicker wrote: »

caveman38. In my case I allow 7 days before due date for payment. I also set up 12 payments (using your example) of £160 BUT after the 11th s.o. has been executed I then edit the last payment (via home banking) to the amount outstanding.(£3340??)

Apologies for stating the obvious, but if setting up all your payments in advance like this...

1. Allowing a fixed 7 days might not be long enough at Xmas/Easter where we have two (or even three at New Year) bank holidays to factor in, and

2. You must still check your statements each month because your payment due date will vary (both with the number of days in the month, and if the lender changes makes a major change to the date...as MBNA are prone to do).


For what it's worth, my own approach is to go the DD route, and make a manual final payment (after first ascertaining the lender's policy on DD collection following such manual payments). I never cancel DD's until the card itself is closed.

sicker

You are right as usual YB. I should have said 10 days. Getting old brings many new problems as well as many advantages.

John