A cautionary tale for 2019!
I pay my credit card bill by direct debit on the 3rd of each month. On Christmas Eve past, I paid €750 off my credit card balance as I was approaching my credit limit on the card. Given payment wasn't going to be taken from my current account until 3rd January, I assumed the DD in January would be reduced by this payment.
Unfortunately for me, a full payment (not allowing for the €750) was taken from my current account on the 3rd January but as I didn't have sufficient funds for this higher amount, I was charged €10 on my current account for the bounced direct debit and two €7 fees on my credit card from non-payment and late payment of the balance there.
My credit card provider tells me that a payment needs to be made at least 7 working days before a DD is taken if it is to have an impact on the balance requested.
Thing is, you think by reading this forum that you're well informed and making money work hardest for you. By this €24 mistake alone, I've probably wiped out much of the benefit of not floating too much in my current account but having it squirrelled away in the best possible savings accounts etc. Too 'smart' for my own good.
I pay my credit card bill by direct debit on the 3rd of each month. On Christmas Eve past, I paid €750 off my credit card balance as I was approaching my credit limit on the card. Given payment wasn't going to be taken from my current account until 3rd January, I assumed the DD in January would be reduced by this payment.
Unfortunately for me, a full payment (not allowing for the €750) was taken from my current account on the 3rd January but as I didn't have sufficient funds for this higher amount, I was charged €10 on my current account for the bounced direct debit and two €7 fees on my credit card from non-payment and late payment of the balance there.
My credit card provider tells me that a payment needs to be made at least 7 working days before a DD is taken if it is to have an impact on the balance requested.
Thing is, you think by reading this forum that you're well informed and making money work hardest for you. By this €24 mistake alone, I've probably wiped out much of the benefit of not floating too much in my current account but having it squirrelled away in the best possible savings accounts etc. Too 'smart' for my own good.