Direct debit or not?

So, I've only ever had credit cards with direct debits and paid off in full every month.

I'm now looking at opening a 0% credit card which I won't want to pay off in full until I have to (Cash going into a savings account).

The application is asking if I want to set up a direct debit. I'm thinking not in this case with this card. Am I right?

Comments

  • Scrounger
    Scrounger Posts: 1,005
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    Set the direct debit to take the minimum payment each month.

    Scrounger
  • Goldwing1 said:
    So, I've only ever had credit cards with direct debits and paid off in full every month.

    I'm now looking at opening a 0% credit card which I won't want to pay off in full until I have to (Cash going into a savings account).

    The application is asking if I want to set up a direct debit. I'm thinking not in this case with this card. Am I right?
    You can setup a DD for minimum or a custom amount - some lenders like Barclays allow you to set it in the app, some you have to contact them and ask them to change it. I always set my BT offers to be the balance / the number of months of the offer to ensure it's always cleared 
  • Zuzi
    Zuzi Posts: 205
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    I was using a CC this way a few years ago (M&S) and as far as I remember - but obviously check the terms of your own 0% offer - it was a requirement to be paying the minimum every month. So I had a direct debit set up to automatically pay the minimum, and then a few weeks before the offer expired I sent them the outstanding balance all at once.

    Since then I have been paying off my CCs via a direct debit for the full amount every month, I never send any additional payments. It works well for me because even reading some threads here sending manual payments can sometimes wreak havoc and cause confusion re: the outstanding amounts to be paid, and people are finding themselves paying interest unexpectedly...
  • MalMonroe
    MalMonroe Posts: 5,783
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    Yes, do set up a direct debit. It's peace of mind as you then know that the minimum payment will always be made on time and you won't get into trouble for missing any payments. (If anything were to happen with the direct debit payments, there's the direct debit guarantee to fall back on).

    As you are aware that you will have to clear the balance before the end of the 0% balance offer, there shouldn't be a problem. 

    Set the DD instruction and then forget about it until the time comes to ensure it's cleared. And enjoy!    :)
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • Zuzi said:
    I was using a CC this way a few years ago (M&S) and as far as I remember - but obviously check the terms of your own 0% offer - it was a requirement to be paying the minimum every month. So I had a direct debit set up to automatically pay the minimum, and then a few weeks before the offer expired I sent them the outstanding balance all at once.

    Since then I have been paying off my CCs via a direct debit for the full amount every month, I never send any additional payments. It works well for me because even reading some threads here sending manual payments can sometimes wreak havoc and cause confusion re: the outstanding amounts to be paid, and people are finding themselves paying interest unexpectedly...
    If you pay a lump sum it will sometimes remove the DD pull for that month as you have made the minimum so you always need to pay the whole lot one way or the other to avoid interest. People get caught out not realising that if you don't clear in full you end up with trailing interest for the whole balance, no matter how much was paid off. Conversely, with Halifax I did a BT after the statement was made (my mistake) and they took the full DD as well as the BT so I ended up in a huge credit!
  • Thanks for the advice. 

    Let's see how it works in practice.
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