Missed CC repayment date - will overpaying mimimize interest?

pb3

[Deleted User] said:

Yes I got that thank you But why not pay it off in full? Unless of course the amount is part of a large debt.

A fair point. Most of my credit cards are setup with a DD for the minimum amount as a safety net in case this very scenario arises. I'm old enough to remember the days when some CC providers were charging up to 35 quid as a late payment fee.

I've always made manual payments to pay off my balances due. I like to clear all my cc balances shortly after payday so that my current account balance reflects my true financial position. I have tried the whole bill direct debit for one of my cards and while admittedly it avoids these issues, I dislike the fact that in some cases it may be several weeks before the DD is taken meaning that my current account balance is misleading.

I'm open to reviewing my position wrt DDs though. My missing a payment is extremely rare as I have the due dates in my diary. On the bright side the DD means that I won't be hit with a late payment charge as well as the interest.

Nasqueron

pb3 said:

[Deleted User] said:

Yes I got that thank you But why not pay it off in full? Unless of course the amount is part of a large debt.

A fair point. Most of my credit cards are setup with a DD for the minimum amount as a safety net in case this very scenario arises. I'm old enough to remember the days when some CC providers were charging up to 35 quid as a late payment fee.

I've always made manual payments to pay off my balances due. I like to clear all my cc balances shortly after payday so that my current account balance reflects my true financial position. I have tried the whole bill direct debit for one of my cards and while admittedly it avoids these issues, I dislike the fact that in some cases it may be several weeks before the DD is taken meaning that my current account balance is misleading.

I'm open to reviewing my position wrt DDs though. My missing a payment is extremely rare as I have the due dates in my diary. On the bright side the DD means that I won't be hit with a late payment charge as well as the interest.

The DD is always taken on a fixed date and you can ask them to set the DD for a couple of days after payday if you wish - if you're doing it over many months and years, it's easily to balance it, provided you're not fooling yourself into thinking money in your account is free for the taking, ignoring the DD coming.

I run a spreadsheet of all payments going out and actually use this to my advantage, I have a Kroo account where I stick all my spare cash after payday, it earns interest (calculated daily, paid monthly) and I can move money back into the main account just before bills are due and gain a few extra pounds interest - having £1500 in an account paying 4.35% interest for 2 weeks is better than having it in the current account earning nothing just so it's ready for bills!

Angelica123

pb3 said:

[Deleted User] said:

Yes I got that thank you But why not pay it off in full? Unless of course the amount is part of a large debt.

A fair point. Most of my credit cards are setup with a DD for the minimum amount as a safety net in case this very scenario arises. I'm old enough to remember the days when some CC providers were charging up to 35 quid as a late payment fee.

I've always made manual payments to pay off my balances due. I like to clear all my cc balances shortly after payday so that my current account balance reflects my true financial position. I have tried the whole bill direct debit for one of my cards and while admittedly it avoids these issues, I dislike the fact that in some cases it may be several weeks before the DD is taken meaning that my current account balance is misleading.

I'm open to reviewing my position wrt DDs though. My missing a payment is extremely rare as I have the due dates in my diary. On the bright side the DD means that I won't be hit with a late payment charge as well as the interest.

I changed all my credit card DDs to come out on the same day (a few days after payday)for this very reason. I changed them via their web chats but you could also phone them. You may have one month's statement that will be more than a month's worth of spending to calibrate to new date but it is super easy to change otherwise.