Dianne-TX Posted July 1, 2009 Share Posted July 1, 2009 Two cc companies are working with us on lowering our min. payment, but they require auto withdrawal. I know DR says not to allow that, but is that just when your account is bad and your working with a seperate collection co.? I'm reluctant, but I'm not sure if what the concerns are when you are just working out a lower payment? Thanks. Quote Link to comment Share on other sites More sharing options...
4kiddies Posted July 1, 2009 Share Posted July 1, 2009 My mom, who works in a bank always advises NOT to allow auto-withdrawls. She has seen too many overdraft issues as a result. Quote Link to comment Share on other sites More sharing options...
Dianne-TX Posted July 1, 2009 Author Share Posted July 1, 2009 The reasoning is that if you allow that they have direct access to your account. If you are low or they change the terms on you it could be bad. What if they send something in writing regarding your set up? Also, wouldn't they have to send something or contact you if the terms change? Quote Link to comment Share on other sites More sharing options...
Julie in CA Posted July 1, 2009 Share Posted July 1, 2009 No way *in the world* would I allow a credit card company to have electronic access to my bank account. A Pollyanna outlook regarding the business practices of credit card collections can get you in a lot of trouble. They're not your friends...please don't do it! Sure, I can envision it working out fine, but I can also envision 25 ways it could go wrong. :ohmy: Quote Link to comment Share on other sites More sharing options...
ciyates Posted July 1, 2009 Share Posted July 1, 2009 If you decide to go the auto withdrawal route set up a separate account just for that purpose. You can electronically transfer the payment amount only that way they can not over drawl your account. You can set this up all automatically so it is seemless. If your cc payment is due on th 15th and one on the 20th have the exact payment transferred from you main account into the second account the day before each payment is due. I would also request everything in writing. They are reluctant to do this but will if you keep pressuring them. Good luck! Quote Link to comment Share on other sites More sharing options...
.... Posted July 1, 2009 Share Posted July 1, 2009 Dave says never under any circumstances do you give them free access to your checking account. Like another poster said, you can open a seperate checking account that's "just theirs". The Dave Ramsey forum has a bunch of stories on there of people's accounts being overdrawn from the automatic withdrawal scheme. Quote Link to comment Share on other sites More sharing options...
Kathy in MD Posted July 1, 2009 Share Posted July 1, 2009 I was introduced to automatic withdrawl when we lived in Germany. We kept up with it when we moved back to MD. We've never had any problems with it, but we have had plenty of problems with mislaid bills or missing due dates (our credit cards love to move due dates around.). If you don't have a cushion in your checking account, I'd only do auto withdrawl with fixed amounts, such as the budget schedule many utilities set up. This will make it easier for you to keep track. You will sign paperwork allowing the bank to transfer that fixed amount ONLY once a month (or ?). To change that amount, YOU have to sign a different paper. We do have a cushion, so we do auto-withdrawl on almost all our bills. I DON'T give the credit card companies unlimited access. I've estimated what the minimum payment typically is, added a set amount to that and allow them to pull only $x, and not one penny more. That way I avoid the moving due date and penalties, but I control paying off the balance. Quote Link to comment Share on other sites More sharing options...
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