Related Credit Card Article

"Direct debit payments could help credit card customers to avoid charges"

By admin | October 24th, 2009 | Credit Cards

A huge number of credit card customers decide, for one reason or another, not to set up a direct debit or standing order to make repayments on their credit card bill, and instead make a manual payment online, by cheque, or by phone when their credit card statement arrives.

Whilst this may be an effective option for those that clear their balance in full each month it can prove risky for those that make smaller repayments on their balances.

Industry officials are concerned that some people may be getting charged on their credit card accounts for late or missed payments, which could easily be avoided if the cardholder had a direct debit set up for at least the minimum repayment, allowing them to then make a manual payment for anything over and above the minimum repayment that they wanted to make.

This has been highlighted during the recent spate of postal strikes, where officials were concerned that those paying their credit card bills by cheque could be hit with charges through no fault of their own.

Even those that make their credit card repayment in full each month could benefit from setting up a direct debit for the minimum repayment as a precaution.

Whilst it is always advisable to pay more than the minimum repayment on credit cards setting up a direct debit for this amount would shield the cardholder from unnecessary charges resulting from missed or late payments, which can easily happen due to anything from postal strikes to simply forgetting to make the payment.

The cardholder can then contact the credit card provider to make additional payments if they wish to pay more than the minimum repayment and can even clear the balance in full.

Tags: credit card repayments, direct debit repayment

Related Articles:

• Credit card consumers experiencing problems credit card subscriptions

  It has been revealed that a large number of consumers that have credit cards in the UK may be experiencing real problems with a range of companies that take payment for services from a credit card on a monthly basis, rather than via direct debit or standing order. Many of these cardholders are finding that...

• Credit Card Minimum Payments – The True Cost OF Living On The “Never Never”

  The most unfortunate thing with making a purchase on your credit card is that at some point you are going to be asked to repay the debt incurred. Now, when the statement arrives you’ll have 3 repayment options: (i) repay the entire balance; (ii) repay a sum of the balance, but not all; or (iii) make the minimum...

• Lower monthly repayments could lead to longer credit card debt and more interest

  A recent report has highlighted how millions of consumers could face many decades of credit card debts and could be left paying a fortune on their credit card balance due to changes being made to their required minimum repayments. The changes are being made by Halifax for its millions of customers, who are being told...

• Firms that make monthly credit card charges to consumer causing problems

  According to a recent report many consumers in the UK who have credit cards are getting trapped by firms that take money from the card on a monthly basis. Officials believe that whilst in some cases firms may be making a genuine mistake by continuing to take monthly credit card payments after a service has...

• Late Payment Charges On Credit Cards

  Credit card companies make a HUGE income from people who do not pay their demands on time. These can range from £10 up to £30 then you still must add the interest payments to that for the next month!!!! If you feel that the credit card company has been a little over zealous in charging you...

Other Recent Articles

Increase in availability of interest free credit cards

A recent report has claimed that the number of interest free balance transfer credit cards is on the increase, with...

By admin | March 13, 2010 | Read More

Cash back credit cards set to become increasingly rare

The rewards based credit card has become very popular over recent years, particularly amongst those that tend to repay their...

By admin | March 9, 2010 | Read More

Capital One customers hit by huge increases on credit cards

According to recent reports many credit card customers that have cards with Capital One have been stung with huge increases...

By admin | March 5, 2010 | Read More

New high for credit card interest rates

Recently released figures have shown that credit card interest rates in the UK have reached a new high, despite the...

By admin | March 3, 2010 | Read More

Credit card firms reject many proposals

A number of proposals have been put forward recently to try and increase fairness for credit card customers, with the...

By admin | March 1, 2010 | Read More