Credit card direct debit cancelling

doristuck4

I'm selling my house and buying another, I've got a lot of equity, I have a mortgage ready and my mortgage company have put within my mortgage that when completion day comes my debts have to be paid off and my solicitor has to check that they are clear, my question is as I'm clearing off my credit cards they are due on the day after we are hoping to complete, do I cancel my direct debit on each card a few weeks before completion, what i don't want to happen is i make the payment then I have to claim the overpayment back plus I have other things I want to do with the money we would pay out for other things for new property. I know they start process to get the payment 7 days before, I don't want it to make problems if I do cancel them.

Altior

If you're planning to manually settle the balances, then there's no time like the present. Pay them off and delete the DDs. There's enough other things to be thinking of when moving house !

doristuck4

I have this month's payments coming out so wanted to wait for them to be cleared then cancel them before the next one is started, is this ok to do

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81942848#Comment_81942848

That would be the best way to do it as some credit card companies will still take the direct debit even if a manual payment is made. Let this months DD go through then cancel the DD before the statement is produced.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81942848#Comment_81942848

Yes, that's fine.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81942806#Comment_81942806

That is OK if OP pays balance in full each month. If OP does not, then it would be wise to leave DD in place, as there will be trailing interest to pay. Leaving DD in place means they would not miss this & end up with a missed payment fee.👍

Altior

https://forums.moneysavingexpert.com/discussion/comment/81942965#Comment_81942965

The OP isn't stopping their statements, only paying off the OB.

I suppose updating the DD to take the statement balance would add a second layer of safety. So sequence of events, let the most recent DD process, pay the net balance before the new statement date, update the DD to take the full statement balance.

doristuck4

I dont know what op or ob stand for lol.

So I know that interest will be added on after the full payment has been paid, I will keep checking it so that as soon as the interest is on there ill pay it, its normally only a few days after they take monthly payment. But as its in my mortgage agreement I have to show its paid, if I was to change the monthly payment to pay all the amount surely I will still get interest added a few days is this correct or not thanks

CliveOfIndia

https://forums.moneysavingexpert.com/discussion/comment/81943331#Comment_81943331

OP = Original Poster, i.e. you. OB, in this context, means Outstanding Balance.

First question - do you usually pay your cards in full every month? If so, just pay this month's statement in full, job done, you'll pay no interest. If you're worried about the timings of the Direct Debit, then cancel the DD now, pay the card in full the moment the statement arrives, then you'll have no issue. Do remember, though, to either reinstate the DD later, or else make sure you pay the full amount every month manually going forward, to avoid interest.

If you carry a balance from one month to the next on a standard interest-bearing card, then you'll have trailing interest to pay next month, even if you clear this month's balance in full. In that scenario, you need to pay 2 month's statements in full to get back to square one.

doristuck4

Oh thankyou for explaning what they meant

I do not pay it off in full, I pay a monthly payment so interest is added after the payment is taken, As i have a lot on my credit cards we wanted to clear all our debts with some equity.

I just want to know as completion will hopefully be 1st of may and payments are due out on the 2nd, of which the direct debit will already be in the pipeline, so I don't want to pay the monthly payment then pay it all off, I want to use some money that we would normally pay on direct debit for other things for new property, I know there will be interest added but it won't be as much as it normally is. I just don't want to cancel the direct debit and it courses trouble if I do

CliveOfIndia

"I just don't want to cancel the direct debit and it courses trouble if I do"

Cancelling the DD won't cause an issue as such, but there are 2 thing you need to watch very carefully.

First, make absolutely sure you pay at least the minimum amount manually when you receive the statement. Secondly, make sure you keep an eye on future statements, and always pay at least the minimum each month.

Finally, if/when you do pay off the complete statement balance, make sure you look carefully at next month's statement - even if you've made no more purchases, there will still be a small amount of trailing interest to pay.