Direct Debits

kidder44

Hi All,
How do I set up a direct debit, that ensures only the minimum payment is made to my credit card account, during the interest free period??

Regards Kidder44

YorkshireBoy

One phone call to your card provider.;)

Don't forget to ring them again towards the end of your 0% period to get them to switch it to full balance payment. That is, unless you're BT'ing to a new card of course - in which case don't leave it too late to apply for your next card (6-8 weeks before current 0% deal expires).

Milarky

I'd modify the above advice to include:

a) You'll very likely have to make the first payment yourself due to the time a DD generally takes to set up. [In this, only assume a payment will be taken when it is printed on the statement, saying that it will be]

b) You can switch from minimum to full amount DD collection in the last statement period of the 0%, but this does not always prevent [some] interest being charged anyway. It all depends on exactly when that period ends.

[I tend to stick with DD min payment throughout and either make a one-off payment for the balance on the very last day minus two [to allow for the payment to cross on the precise date] OR try to arrange for a new balance transfer - on a new card - as close to this date as the circumstance allow]

The point about maintaining an automatic minimum payment is that it allows you to make your own arrangements around the remaining debt at the end of the period, and so leaves you 'in control'.