Paying statement balance early

Desmond_Hume

The bill hasn’t come in though? 

Doorstop1

NanookOfTheNorth said:

Hi Doorstop1

The direct debit charged to your bank account is unlikely to be anything to do with 'recent purchases'.  It will either be your last statement balance, or the difference to what you paid early and the statement balance.

I've paid some balances early in full or in part, and if it's done in sufficient time before the credit card company can amend the direct debit then either a reduced amount or no direct debit takes place.  Thats with Barclaycard.

But some other credit cards I think I've seen comments like paying a statement balance early does not always reduce the direct debit amount.

I would have thought that the extra credit (where your credit card balance is in credit) can be returned to your bank account if you requested it to the credit card company.

Thanks for the reply. The amount of the direct debit was for the total outstanding balance (not statement balance, which was zero) on my card  some of which were for purchases made only 4 days previously.

LinLui

born_again said:

LinLui said:

For me it's an old-fashioned habit - at nearly 67 I think I'm entitled to one old-fashioned trait. You pay your bills when they come in and don't keep debt (poor, working class upbringing). I could leave it, but I don't. As far as I am concerned the direct debit is a safety mechanism for me going doo-lally and forgetting to pay.

While I get the point.
Why have a CC. Just use a Debit card, which negates the need to keep paying bills, as spent money is taken straight from the account.

Because credit cards offer better protections, because I get better deals when travelling, and because its my credit card and not yours? If this is what works for me,  why do you think I should have to do it your way?  

born_again

LinLui said:

born_again said:

LinLui said:

For me it's an old-fashioned habit - at nearly 67 I think I'm entitled to one old-fashioned trait. You pay your bills when they come in and don't keep debt (poor, working class upbringing). I could leave it, but I don't. As far as I am concerned the direct debit is a safety mechanism for me going doo-lally and forgetting to pay.

While I get the point.
Why have a CC. Just use a Debit card, which negates the need to keep paying bills, as spent money is taken straight from the account.

Because credit cards offer better protections, because I get better deals when travelling, and because its my credit card and not yours? If this is what works for me,  why do you think I should have to do it your way?  

I don't. You can do it how you like. Was just a comment.

As a aside Credit & Debit cards have the same chargeback protection. 

35har1old

molerat said:

You need to read the statement to check what happens if you pay early when a DD is set up.  Some clearly state that the DD will still be taken - once the statement is generated that is what will be taken irrespective, others will reduce / stop the DD.  It may also be that you left it too late to change what had been set in motion.  Which card is it ?

Asda (JaJa), TSB, Tesco & Santander may change the DD provided there is a clear 4 working days after payment.  LLoyds, Halifax, Virgin & MBNA will take the DD irrespective of payments.

In my case LLoyds did reduce the DD payment 

35har1old

born_again said:

LinLui said:

For me it's an old-fashioned habit - at nearly 67 I think I'm entitled to one old-fashioned trait. You pay your bills when they come in and don't keep debt (poor, working class upbringing). I could leave it, but I don't. As far as I am concerned the direct debit is a safety mechanism for me going doo-lally and forgetting to pay.

While I get the point.
Why have a CC. Just use a Debit card, which negates the need to keep paying bills, as spent money is taken straight from the account.

Perhaps a cashback card

35har1old

born_again said:

LinLui said:

born_again said:

LinLui said:

For me it's an old-fashioned habit - at nearly 67 I think I'm entitled to one old-fashioned trait. You pay your bills when they come in and don't keep debt (poor, working class upbringing). I could leave it, but I don't. As far as I am concerned the direct debit is a safety mechanism for me going doo-lally and forgetting to pay.

While I get the point.
Why have a CC. Just use a Debit card, which negates the need to keep paying bills, as spent money is taken straight from the account.

Because credit cards offer better protections, because I get better deals when travelling, and because its my credit card and not yours? If this is what works for me,  why do you think I should have to do it your way?  

I don't. You can do it how you like. Was just a comment.

As a aside Credit & Debit cards have the same chargeback protection. 

Debit cards don't have the same level of over all protection 

Olinda99

are you able to say which card it was?

Doorstop1

Thanks for all your comments. They have been helpful. Moral is to really check what I sign up to and now find a card which gives me the flexibility that I find useful without messing up other budget arrangements! The card was from Sainsbury's.

CliveOfIndia

Doorstop1 said:

Thanks for the reply. The amount of the direct debit was for the total outstanding balance (not statement balance, which was zero) on my card  some of which were for purchases made only 4 days previously.

The other complicating factor is when the DD is generated, in relation to when you made the interim payment.

The DD isn't usually created in real-time.  Let's say your DD is due to come out on Friday.  The bank will have a computer batch run on the Monday evening that says "Create the DD schedules for all DD's that are due this week".

So the DD schedule (and amount) is set up on the Monday, come Friday the DD for that amount will be called for.  Another customer whose DD is due on Thursday will similarly have had their DD calculated on the Monday, in the same batch run as yours.

So if you make an interim payment on Wednesday, it won't make any difference, as the DD has already been scheduled based on the balance as of Monday.

That's over-simplifying it to some extent - the exact timings will vary from bank to bank.  Some might do it on a weekly basis, some might do it every other day, every 4 days, whatever.  But the principle is the same.