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

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