Direct Debit doesn’t clear the balance - I’m now in debt !

[Deleted User]

k12479 said:

WishIwasScrooge said:

The DD goes out on the 3rd of each month.

On the same date every month? Isn't that a bit strange, most credit card due dates change slightly from month to month. It's not perhaps a standing order rather than a DD is it?

Two of mine are always on a fixed day unless it's a weekend - that's 2 cards paying DD off in full every month and a couple (BT deals) seem to change a bit

kaMelo

WishIwasScrooge said:

eskbanker said:

WishIwasScrooge said:

I have discovered that despite having a DD set up to pay off the credit card balance in full every month, I have a “stealth debt” of £2600. I only found out because I received texts telling me I’m nearing the edge of my credit limit. I am so angry. I switched to e statements but these don’t provide an obvious tally. This is a M&S card. Watch out ! 

Are you saying that the DD is being taken every month but for the wrong amount, or that it's not being taken at all?  What do your bank statements say?

The DD goes out on the 3rd of each month. Many years ago I set it up to pay off the monthly amount. So, money is being paid every month that is more than the minimum but apparently not enough to clear the mounting debt. My online statements don’t go back far enough to be able to see when this started to go wrong. I thought it was connected to me having changed banks recently but the DD that was returned by M&S has been paid back and credited to my M&S account. I really can’t see when this started to accrue and will have to write to M&S for a full breakdown. 

I’m relieved that my understanding of how this should work is correct but am equally horrified to find myself in debt. I must have made a mistake somewhere. This is why I posted - I’m completely baffled and must sound really stupid.

You get three options for DD payments.
1. Statement Balance
2. Minimum Payment
3. Fixed Amount.
It's important to know which one is currently being used.

Do you have any statements prior to going paperless? If so what DD is being used for those statements.

If you've set it up to collect the statement balance then you should never have a "running total" as such that would generate any interest. Any of the two other options could allow a running total to happen and generate interest so it's important to know exactly what was in place originally and now, if they're different then when did it change and who changed it.

For that you're going to need statements as they will tell you exactly what was going to be collected, if you don't have them then as you suspected you're going to need M&S to supply them

On a side note, (and not a dig at yourself OP) this kind of post should serve as a reminder for everyone to download and keep copies of statements as providers will not, nor are they obliged to, keep statements available forever.

Giddypip

The DD goes out on the 3rd of each month. Many years ago I set it up to pay off the monthly amount. So, money is being paid every month that is more than the minimum but apparently not enough to clear the mounting debt. My online statements don’t go back far enough to be able to see when this started to go wrong. I thought it was connected to me having changed banks recently but the DD that was returned by M&S has been paid back and credited to my M&S account. I really can’t see when this started to accrue and will have to write to M&S for a full breakdown. 

I’m relieved that my understanding of how this should work is correct but am equally horrified to find myself in debt. I must have made a mistake somewhere. This is why I posted - I’m completely baffled and must sound really stupid.

As you mentioned a fixed payment date and with what you mentioned here it sounds like you have a standing order for a fixed amount rather than a direct debit to pay off the full amount. 

You've probably still been covering the minimum amount due but the balance has been climbing. 

Penelopa.Pitstop

k12479 said:

WishIwasScrooge said:

The DD goes out on the 3rd of each month.

On the same date every month? Isn't that a bit strange, most credit card due dates change slightly from month to month. It's not perhaps a standing order rather than a DD is it?

M&S seems to always have the same dates of statement and payment.

WishIwasScrooge

Thank you everyone for all your responses and advice. I have now sorted this out. I wish I could take down my original post to avoid wasting more of anyone’s time. I have recently been using some discount cards supplied by my employer and an association I am part of. I have set up various automatic top ups and have done quite a few manual top ups. It all comes down to me not realising how much I’ve been spending. The first person I spoke to just didn’t make sense but the second person did.
so thanks again and if anyone knows how I can take the post down I will do

k3lvc

WishIwasScrooge said:

Thank you everyone for all your responses and advice. I have now sorted this out. I wish I could take down my original post to avoid wasting more of anyone’s time. I have recently been using some discount cards supplied by my employer and an association I am part of. I have set up various automatic top ups and have done quite a few manual top ups. It all comes down to me not realising how much I’ve been spending. The first person I spoke to just didn’t make sense but the second person did.
so thanks again and if anyone knows how I can take the post down I will do

No need to remove the post - it'll serve as a useful link to anyone in the same situation

Can you calrify though - was your DD set for a specific amount rather than 'full balance' ? Otherwise irrespective of your top-up spending (which may have increased your CC balance) it should still have been cleared each month ?

WishIwasScrooge

k3lvc said:

WishIwasScrooge said:

Thank you everyone for all your responses and advice. I have now sorted this out. I wish I could take down my original post to avoid wasting more of anyone’s time. I have recently been using some discount cards supplied by my employer and an association I am part of. I have set up various automatic top ups and have done quite a few manual top ups. It all comes down to me not realising how much I’ve been spending. The first person I spoke to just didn’t make sense but the second person did.
so thanks again and if anyone knows how I can take the post down I will do

No need to remove the post - it'll serve as a useful link to anyone in the same situation

Can you calrify though - was your DD set for a specific amount rather than 'full balance' ? Otherwise irrespective of your top-up spending (which may have increased your CC balance) it should still have been cleared each month ?

It was for the full amount. I’ve not paid any interest. There must be a cut off point which determines the amount paid on the due date. So there could well be a sort of overlap but the fact I’ve not paid any interest must mean it has been cleared on the payment cut off date if that makes sense ? 

[Deleted User]

The cut off point is your statement date. That's the balance that the DD takes.

Your subsequent spending appears on the next statement. Each month, you'll get a new statement with a new balance.

born_again

WishIwasScrooge said:It was for the full amount. I’ve not paid any interest. There must be a cut off point which determines the amount paid on the due date. So there could well be a sort of overlap but the fact I’ve not paid any interest must mean it has been cleared on the payment cut off date if that makes sense ? 

As above. When you receive the statement that tells you the amount to be paid for that period. Anything after that date goes onto the next statement.