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I don't have enough money in my account to cover a Direct Debit Amex repayment scheduled for today. However, that repayment is set to come out of my account 10 days before the payment due date, by which point I'll have enough money to cover that. Am I correct in thinking I can safely let the Direct Debit fail, as long as I follow up with manually repaying my balance by the actual due date? Or are there any consequences to letting the Direct Debit fail?

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    Will your bank actually fail the payment, or will you go into an unauthorized overdraft? It's actually surprisingly hard to avoid that. Dec 10 '21 at 16:46
  • I don’t think I’ve ever heard of a company taking a payment before the due date; especially 10 days before!!
    – RonJohn
    Dec 10 '21 at 22:42
  • @RonJohn I think there's one deadline to pay off your balance in full and not incur interest, and another deadline for making the minimum payment so you're not in default (but you will incur interest). I can't remember which order they occur in but typically you'd set up a direct debit to hit the deadline for whichever you were trying to do. Dec 11 '21 at 13:31
  • @RonJohn At least in the UK, Amex typically take the Direct Debit approximately 10 days before the date by which you must have paid. Both dates are provided on the statement.
    – Vicky
    Dec 11 '21 at 17:00
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Am I correct in thinking I can safely let the Direct Debit fail, as long as I follow up with manually repaying my balance by the actual due date? Or are there any consequences to letting the Direct Debit fail?

Check the terms and conditions.

There may be penalty fees charged by the bank if overdraft provisions are triggered. They may also move money from another account you have to cover the shortfall.

The credit card company should have a policy addressing this situation. There could be penalties/fees when the first attempt fails.

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The best advice (always) is - don't let the due payment fail - there be consequences!

Ring the card provider NOW to discuss the situation.

Chances are that they will view your call sympathetically and will delay the collection date by the requested period without imposing any penalty (and adjust future collection dates accordingly) to ensure that the payment is made in a timely fashion.

Take control of the situation yourself and don't further your debt management by robbing Peter to pay Paul. The card providers are well used to dealing with minor crises and generally will do their utmost to accommodate reasonable requests.

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    Yes! Definitely call them immediately. I had a similar situation in my past and they were very willing to work with me. No interest paid, not hit on my credit. Very reasonable usually! (Once you get off of hold lol)
    – Flats
    Dec 10 '21 at 14:46
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    It's too late for a DD requester to cancel a payment due today. Dec 10 '21 at 16:46

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