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    • Dan54321
    • By Dan54321 12th Oct 18, 8:05 PM
    • 5Posts
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    Dan54321
    Halifax clarity changes: Additional payments not reducing direct debit
    • #1
    • 12th Oct 18, 8:05 PM
    Halifax clarity changes: Additional payments not reducing direct debit 12th Oct 18 at 8:05 PM
    Hi

    Firstly, sorry if this has been mentioned elsewhere but I couldn't find a thread on it.

    Recently a change was made and additional payments to the Halifax clarity card will now not reduce the direct debit amount, i.e the total balance. Now, one of the main appeals of this card for people travelling abroad is that if cash was withdrawn from at ATM and paid off soon after (by making a one-off payment) then the interest accrued was minimal. But now, even though it's possible to still make additional payments, this has recently meant I've gone into credit for the following month. Not a big deal, but I'm living abroad and since I'm likely to be withdrawing more cash than making direct payments with the card, it means I'll just keep building up credit (in order to pay off the cash withdrawn and avoid high interest charges).

    So, am I missing something, or is there anyway to withdraw cash now without a)incurring high interest rates or b) carrying on making one-off payments to cover the cost of cash withdrawn as before but without potentially going into masses of credit?

    Thanks

    Dan
Page 1
    • BoGoF
    • By BoGoF 12th Oct 18, 8:28 PM
    • 3,530 Posts
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    BoGoF
    • #2
    • 12th Oct 18, 8:28 PM
    • #2
    • 12th Oct 18, 8:28 PM
    Don't pay by direct debit then?
    • Gary_Dexter
    • By Gary_Dexter 12th Oct 18, 9:09 PM
    • 2,393 Posts
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    Gary_Dexter
    • #3
    • 12th Oct 18, 9:09 PM
    • #3
    • 12th Oct 18, 9:09 PM
    if you’re living abroad have you confirmed with Halifax they can still supply a card to non-UK resident?

    Why not open a credit card with a local bank in local currency?
    • 18cc
    • By 18cc 12th Oct 18, 11:58 PM
    • 806 Posts
    • 536 Thanks
    18cc
    • #4
    • 12th Oct 18, 11:58 PM
    • #4
    • 12th Oct 18, 11:58 PM
    I think you are right in what you say at least that is the way I read it even if you make payment so will still take the direct debit you may find the best thing to do is to cancel the direct debit and pay everything manually
    • Carrot007
    • By Carrot007 13th Oct 18, 12:10 AM
    • 1,648 Posts
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    Carrot007
    • #5
    • 13th Oct 18, 12:10 AM
    • #5
    • 13th Oct 18, 12:10 AM
    I never though about it too much.


    However they are not clear but they mean.


    Will not reduce the DD unless it's going to put you in credit. (Of course if you make it the day before the DD it's still goign to be taken as it needs time to clear!)


    See https://www.halifax.co.uk/creditcards/help-guidance/terms-and-conditions/clarity-card/


    Specifically....


    Scenario 2
    If you have a balance of 100, and the minimum payment we ask you for in your statement is 20, and there is a refund to your account of 90 between your statement date and your payment due date, (or your Direct Debit date, if earlier), then we will reduce the minimum payment needed so that it equals the full remaining balance of 10.


    So yes it does reduce. But not unless it has to. So it's just to encorage people to pay of the balance more.


    (Yea I know that bit is refunds, but I'm sure additional payments will do the same!)
    Last edited by Carrot007; 13-10-2018 at 12:14 AM.
    • Dobbibill
    • By Dobbibill 13th Oct 18, 9:56 AM
    • 3,377 Posts
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    Dobbibill
    • #6
    • 13th Oct 18, 9:56 AM
    • #6
    • 13th Oct 18, 9:56 AM
    If you like to have a DD so you don't miss a payment, why not change the DD to minimum payment - you can do all other payments manually throughout the month as/when it suits you.
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    • callum9999
    • By callum9999 13th Oct 18, 11:28 AM
    • 3,913 Posts
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    callum9999
    • #7
    • 13th Oct 18, 11:28 AM
    • #7
    • 13th Oct 18, 11:28 AM
    if youre living abroad have you confirmed with Halifax they can still supply a card to non-UK resident?

    Why not open a credit card with a local bank in local currency?
    Originally posted by Gary_Dexter
    There could be many reasons.

    For me:

    1) I don't have the same credit history.
    2) The UK has significantly better options than many countries (there is no equivalent to the Clarity card here).
    3) I already have UK ones open, no point getting rid of them.
    • Dan54321
    • By Dan54321 17th Oct 18, 7:21 PM
    • 5 Posts
    • 1 Thanks
    Dan54321
    • #8
    • 17th Oct 18, 7:21 PM
    • #8
    • 17th Oct 18, 7:21 PM
    Thanks for your replies.

    As I'm studying abroad at the moment, the cheapest way to transfer money abroad has actually been to make a cash withdrawal at an ATM with the halifax card, and then pay that money into an account I opened here. I then use the local account to make any rent payments etc. As long as I've been making an additional payment each month to cover the money I took out of an ATM, the interest has been minimal and is cheaper than sending money abroad directly from my UK bank account to my local bank account.

    As it's been suggested, I've come to the conclusion that cancelling or amending the direct debit are ways around this. As I like having the DD to avoid any missed payments, I've opted to change it to pay off the minimum payment only as someone suggested. To make things simpler, I'll only use this card now for ATM withdrawals; if I make an additional payment each month to cover the money withdrawn, the minimum payment should be close to zero anyway.

    I'll now use the Aqua reward card I have to make direct card payments at the supermarket etc. as this card also doesn't foreign transaction fees.
    • Jonathano
    • By Jonathano 20th Oct 18, 9:32 AM
    • 8 Posts
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    Jonathano
    • #9
    • 20th Oct 18, 9:32 AM
    Card in credit
    • #9
    • 20th Oct 18, 9:32 AM
    I payed my clarity card bill early, but they still took a direct debit for the whole amount, now I am in credit....not Sure what is going on there, but luckily I am going abroad, so can withdraw the amount as Fee and interest free cash......i hope?
    Any idea what happened there?
    • zx81
    • By zx81 20th Oct 18, 9:43 AM
    • 19,081 Posts
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    zx81
    The first post of this thread explains what happened there.

    You'll be able to withdraw it abroad as Clarity has no forex fees and there will be no interest as the money is taken from a credit.
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