Not enough money in account to pay DD - what to do?

Sea_Shell

Rob5342 said:

I'd pbone the credit card company and explain the situation and make a payment by debit card which they should see straight away. If it's a one off and you habr discussed it with them that should minimise the risk and any nad effects.

I'd also consider moving my savings to somewhere else, in 2024 there's no excuse for transfers not being instant. 

Some of the best rates are not "instant".     But, yes, having a "float" that is instant, in case you get caught short, isn't a bad thing.   (I have £1000 in Marcus for this reason - even that isn't "instant" instant  )

This isn't really about whether the money is available instantly or not.   It's a life admin issue.

friolento

Yorkie006 said:

friolento said:

Hoenir said:

Direct debit cannot be cancelled. Far too late. Will bounce automatically if there's insufficient funds. 

I can cancel my DDs on my bank account with immediate effect. Which bank does not allow this?

I can cancel DD leaving the current account, but I can't cancel the DD being requested by the credit card company.

If you cancel at the bank, the DD by the card company will bounce.

Pay the card company immediately, at least the minimum payment amount.

Call the card company to tells them what you did and why.

Re-instate the DD with the card company.

Make plans to avoid getting into the situation again.

Emily_Joy

Yorkie006 said:

Emily_Joy said:

1. Make manual payment for the amount over the minimal payment but something you are comfortable with ASAP.

2. Apply for a balance transfer card and transfer balance. The transfer should complete by Wednesday.

3. Apply for a money transfer credit card and transfer money into your account. Then repay it as soon as you can.

4. Go to debt-free wannabe board and post the statement of affairs to get help so that this doesn't happen again

Thanks but, you make is sound like I'm always in debt. I'm not and I don't need another credit card either.
This is just a one-off situation because I had some unexpected expense. I can pay it off in full on Friday when I get paid. The issue is with the DD that is due to be taken on Tuesday morning and I forgot about it. If I remembered sooner, I could have changed the DD amount, transferred money out of my saving account and paid the rest on payday and everything would be ok.

It is actually very practical to have an extra credit card for unexpected expense. Even better to have one that doesn't charge interest on purchases for at least next 6 months, giving you time to sort it.

GrumpyDil

Emily_Joy said:

Yorkie006 said:

Emily_Joy said:

1. Make manual payment for the amount over the minimal payment but something you are comfortable with ASAP.

2. Apply for a balance transfer card and transfer balance. The transfer should complete by Wednesday.

3. Apply for a money transfer credit card and transfer money into your account. Then repay it as soon as you can.

4. Go to debt-free wannabe board and post the statement of affairs to get help so that this doesn't happen again

Thanks but, you make is sound like I'm always in debt. I'm not and I don't need another credit card either.
This is just a one-off situation because I had some unexpected expense. I can pay it off in full on Friday when I get paid. The issue is with the DD that is due to be taken on Tuesday morning and I forgot about it. If I remembered sooner, I could have changed the DD amount, transferred money out of my saving account and paid the rest on payday and everything would be ok.

It is actually very practical to have an extra credit card for unexpected expense. Even better to have one that doesn't charge interest on purchases for at least next 6 months, giving you time to sort it.

But OP has said he doesn't want an additional credit card. Having one with 6 months interest free on purchases when you have no specific need for the card at this time is pointless and potentially a wastes a perfectly good card if OP ever needs this type of offer.

    

Emmia

Sea_Shell said:

Rob5342 said:

I'd pbone the credit card company and explain the situation and make a payment by debit card which they should see straight away. If it's a one off and you habr discussed it with them that should minimise the risk and any nad effects.

I'd also consider moving my savings to somewhere else, in 2024 there's no excuse for transfers not being instant. 

Some of the best rates are not "instant".     But, yes, having a "float" that is instant, in case you get caught short, isn't a bad thing.   (I have £1000 in Marcus for this reason - even that isn't "instant" instant  )

This isn't really about whether the money is available instantly or not.   It's a life admin issue.

This is what I do, I have a savings account that does instant transfers that contains "buffer cash". The interest rate is terrible, but that money isn't there to earn interest. 

NameWithheld

If possible find a friend or relative who can lend you the money for a few days and get it into your current account either by faster transfer or cash deposit by tomorrow 

Rich1976

Best thing you can do in case it happens again, apart from keeping a closer eye on your bank account and expenses is start building up a buffer in an instant access account with your current account provider that you can transfer in seconds. Even if it is only £500-£1000, it allows breathing space and the interest rate is unimportant as that’s not what a buffer or float is intended for.