Closing out a card

NorwichMan

One of my card's 0% deal ends in December and I may have to pay off the full balance (if I can't shift it to another deal).

It's my first time and I'm wondering how best to do it.

- Change the existing minimum amount DD to the full amount (but need to time it right so the last payment before the deal ends does actually take the full amount)

- Keep the minimum amount DD and then make a manual payment just before the 0% deal ends to clear the balance. The card will take an open banking payment from a current account, or I can make a faster payment using account details provided and my card number as reference - not sure which is more reliable or quicker. Then remember to change DD to full amount.

- Cancel the DD and make manual payment of the full amount, or the minimum payment by the due date then manually pay the balance just before the 0% deal ends to maximise interest. Then set up DD again for full amount.

Obviously I want to avoid any over or underpayments or last-minute panics. It's an 8k balance.

How have you more experienced stoozers done it before?

molerat

The important details are when does the deal end in relation to the due date and the statement date, don't assume it is the due date.

Brie

I leave the DD in place and contact the card company to ask how much needs to be paid on what date to ensure there is no interest charged.   And then I pay the amount they need a couple of days early - just in case!

There's also the problem that sometimes the DD will be taken even if another payment is made, sometimes it won't.  Hence going in with belt and braces!  Worst that can happen is that I over pay and they have to refund some.  

surreysaver

You don't say which credit card it is. Some adjust the direct debit if you make a manual payment (as long as you make the manual payment in plenty of time). Some don't.
Some have the 0% ending on the due date, some don't. Some have it ending on the statement date. 
I tend to make a manual payment to save the faff with the direct debit, in the hope that after I've paid it off I get a new 0% offer with the credit card.

Nasqueron

NorwichMan said:

One of my card's 0% deal ends in December and I may have to pay off the full balance (if I can't shift it to another deal).

It's my first time and I'm wondering how best to do it.

- Change the existing minimum amount DD to the full amount (but need to time it right so the last payment before the deal ends does actually take the full amount)

- Keep the minimum amount DD and then make a manual payment just before the 0% deal ends to clear the balance. The card will take an open banking payment from a current account, or I can make a faster payment using account details provided and my card number as reference - not sure which is more reliable or quicker. Then remember to change DD to full amount.

- Cancel the DD and make manual payment of the full amount, or the minimum payment by the due date then manually pay the balance just before the 0% deal ends to maximise interest. Then set up DD again for full amount.

Obviously I want to avoid any over or underpayments or last-minute panics. It's an 8k balance.

How have you more experienced stoozers done it before?

Check the statement - it will show the end date of the BT offer. Assuming your DD goes before this, change it after the previous payment to take the full amount, that will clear it. This is the simplest way, the second and third options of minimum/manual payment just adds an extra step without the DD guarantee e.g. if funds get lost or a payment reference is mis-keyed. 

I'd apply for a card now and see what you get - even if it's a lower limit you can still clear a chunk of the debt

NorwichMan

Thanks everyone, think I will wait for November minimum payment DD then change it to full amount. The December DD should then clear the balance about a week before the offer ends. 

Feels a little bit early to apply for new cards now, I was going to try for the Santander 12 month no fee BT, maybe applying in November. With savings rates reducing I'm not sure any card with a BT fee will be worth much now.