Credit Card Nearly Paid Off In Full

[chrissa1]

My Halifax credit card is down to £190.00 owing. I have a DD of £50/month to take care of my payment when it’s due.

My statement says my payment this month should be £5.30. I intend to reduce the amount I owe more this month.

If I paid off the £190.00 before the DD was taken, what would happen next?

[JimF]

Depends how close it was to the due date. Can you pay off the balance in full now? If so, suggest you do it and cancel the direct debit.

[ToraToraTora]

They only take the balance or your specified amount which ever is lowest. So nothing will be taken.

[woofgang]

Not always, my cards warn me that if I have a dd on the card, that will be taken in addition to any payment that I might make.

[shoota]

I used to run a positive balance on a credit card with a direct debit, any monies I was in credit being taken off the next months account.
Don't know if Halifax is the same.
Can't remember who I had the card with.

[chrissa1]

But surely if my owed amount is Nil, they should not take anything. Should I cancel my DD?

[Hopkirk]

I'm confused by you saying you have direct debit of £50 a month.

Usually you can only select DD of minimum payment or full payment.

[shoota]

You are right Chrissa, mine was a standing order - it was a long time ago.
I'm sure I got a bit of interest on the positive balances.

[naomi24]

I would never have a Direct Debit for a credit card. They encourage people to pay less than they might, hence increasing the debt.

[Hopkirk]

I have a direct debit for the full amount, so I never pay interest and won't get late payment charges.

[chrissa1]

Halifax told me that paying the lowest amount each month would increase what I owed in interest. Hence me upping it to, £50.00

[jennyjoan]

Chrissa - leave well alone - let them take their £190 - believe it or not banks cannot cope with "changes" -

[Hopkirk]

If you pay off the card in good time, no payment should be taken on the DD.

However if you do it with only a few days to go, the wheels would already be in motion and the £50 would still be taken. You need to ring them to check what timescale they work to. Alternatively let the £50 go and pay the next bill as soon as it is issued.

[fiction-factory]

I'd pay £140. Then if they take the £50 as well I'd cancel the DD.
However that assumes it's an interest free deal.

[fiction-factory]

Or do it the other way round as Hopkirk suggests

[ToraToraTora]

chrissa, do not cancel the DD.

[ToraToraTora]

best do what hopkirk says

[chrissa1]

Thanks all. Yes. Hopkirk’s post sounds the best. Cheers.

[fiction-factory]

Okay, if interest is still being added then maybe the balance will be more than £190 by the time your next payment is due so I'd pay as much as possible now, although if the DD is already in the pipeline I would pay £140 asap and then see what the balance is- presumably only a few pounds of interest after the £50 DD is taken. Then I'd change the DD arrangement to paying the balance. I'm assuming you're not still spending on the card so don't want to end up with a credit balance

[ubasses]

If you have already received your monthly statement, and pay off by the due date, there will be no more interest added, unless you have made any further transactions that have not yet gone through. Making the £140 payment and letting the DD go through is the safest way to prevent anything going wrong.

[AuntPollyGrey]

Your Statement shows the minimum payment at £5.30,not how much will be taken off (as you have told us you have a DD set up for £50 a month)
I would do exactly as suggested by Hopkirk suggests and pay £140 now and wait until the DD is taken off of £50 as arranged. You may have a bill next month for a few quid if any interest has been added, which you can pay off as soon as you get the statement.If you leave this on they will take out of your account by DD, the remaining balance, not the full £50.