Tell me your experience with automatic payments

BlackDiamond · #1 (**permalink**) 03-11-2010, 10:33 PM

Hi all,

I recently took out a personal loan from Discover for $15K. I immediately paid back $2500 of it.

The interest rate is 10.99% I used it to balance transfer an existing (and very bad) Bank of America loan that was at 22.99%.

BoA refused to negotiate a lower interest rate with me (despite a credit score of 770 and never a missed payment... BoA's loss!)

The loan will be paid off in 24 months and I will be 100% debt free.

Anyway... When I signed up for the Discover loan, I took the automatic payments deducted from my checking account so that I could select my due date.

I do not think I was offered a lower interest rate because of this, as the CSR had already told me the rate PRIOR to asking me about the auto payments.

Today I got a document from Discover saying that the auto payments will stay until Discover terminates them. Indicating that I can no longer opt out of automatic payments. My roommate thinks that this means I got the rate I did because I took the auto payments.

I'll call them in the morning but if anyone happens to see this before then...

I'm quite nervous about the auto payment process.

I always keep enough $$ in my checking account to cover 2 months worth of expenses, so I'm not worried about not having the money to cover the minimum.

What I AM worried about is a scenario where they fail to deduct the autopayment, or their system glitches and having Discover then try to tell me the payment was late, hence raising my interest rate.

Paranoid? Yes. But I have heard more than a few horror stories.

I also just feel weird not having complete control over when I make the payment. I generally make my online payments the day the statement is available online, well before the due date. I always pay almost double the minimum. But there may be a month here and there where I only pay a little bit over the minimum.

Any experiences with these types of payments?

bosco · #2 (**permalink**) 03-14-2010, 04:08 PM

Did you get it sorted?

Congrats on your debt free target gate.

Get there and stay there is the best way to go.

BoA is closely tied into the fed and they very much orchestrated this
financial collapse and the "solution" of taking the public means to bail
them out. It's a transfer of wealth the likes the world had never seen.

If you watch the docuumentary ZEITGEIST ADDENDUM (aviallable free
online) you'll see how they advise everyone to leave Bank of America and
put your money in a credit union.

I'm big on buying gold.

hagger09 · #3 (**permalink**) 03-14-2010, 09:30 PM

I have seen issues with automatic payment issues. I have seen laypayment on mortgages caused by the system. I make my important payment myself or have the creditor pull it out directly from my account or charge my credit card

CreditNightmares · #4 (**permalink**) 06-03-2010, 10:17 PM

I just noticed a late fee payment on my Best Buy credit card. I had scheduled a payment last month thinking it would count towards May's bill but it was applied to April's, even though I had made a payment for April. Do you think if I called they would waive the late fee charge, or is it not worth the time?

tdls17 · #5 (**permalink**) 07-03-2010, 04:10 PM

If you signed a loan agreement stipulating it was subject to automatic payments; then, unless your stuck unless the lender will work with you.

Fredy Atwater · #6 (**permalink**) 08-03-2011, 04:49 AM

BlackDiamond :

If you have a bank account with BofA close it and try any other bank. They can steal your money in a glimpse. Schedule your payment for the first or second day you are 100% certain you will have the money accredited.

Start saving. Save one hundred monthly. Place it aside. Try saving an amount equal to the monthly payment. Do not get into new debt.

You want to be rich ? Save money. Accumulate your money and put it aside. Without savings, you , me or anybody else will be poor for the rest of their lives.

kate032 · #7 (**permalink**) 08-03-2011, 01:48 PM

I would never allow anyone or any institution to take money from my account. Why not just pay it yourself each month? You can pay online and even set the payment so that it arrives on a certain date, so if you will be gone when it's due, your bill will be paid on time. That method always leaves you in the driver's seat.

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