Set up credit card direct debit, says moneysupermarket.com

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Set up credit card direct debit, says moneysupermarket.com

Tue 27th Apr 2010

Organising a direct debit on a credit card could save people a lot of money, since lenders can often withdraw interest-free balance transfer arrangements if a borrower misses a single payment, it has been asserted.

Peter Harrison, credit card expert at moneysupermarket.com, pointed out that people will have to pay a late payment charge if they inadvertently miss the deadline and they could even have their interest-free deal cancelled.

This would mean the standard interest rate would apply on the whole amount transferred on to the credit card.

"When you receive your first statement, check with your provider to make sure the direct debit has been set up correctly, don't assume it will be set up in time," commented Mr Harrison.

In his view, it is best to make additional payments as well as the minimum requested, since this will help to ensure people have paid off the debt by the time the interest free offer expires.

Head of banking at moneysupermarket.com Kevin Mountford recently described the Liberal Democrats' plan of putting a cap on credit card interest rates as "attractive".

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