Story about Card Debt

[Dad0h0j0]

Hi, so this is story of my friend back from year 2022.

She has salary account in SBI for almost 3-4 year. and in 2021 they provide her Entry level credit card (unable to remember the name of card but it was IRCTC card)

They set up the card and don't know intentionally or unintentionally set up auto as Minimum Bill payment. She was paying most of her payments through Bank UPI. but did around 3000 Rs. transaction on her card. and automatically minimum due is paid off. she didn't check her mails for statements, SMS saying auto debit has been done and she ignored. I think i show her card statement sometimes later I refer her CRED (I was greedy for that 250 rs cashback) then i see her statement it grew to 60k-61k.
I don't know how she missed it, she is usually good with finance basics, Investing regularly in SIP, Had emergency fund, not doing any impulse buying. she paid off that 60k.

So i learn that, Pay bills totally, Not minimum dues. & How much people seems financially good, they makes mistakes. (not checking statements).

 

[iSayyed]

Sorry for her! This is one of the unintentional mistakes people make. And, when people hear such stories, they start demonising credit cards as horrible; you should get rid of them asap. Blah blah blah...

 

[pothi]

Thanks for sharing and sorry about having to go through this.

Almost every month, I hear something similar. Banks make profits from delayed payment. So, it is important to be alert and also to be aware of where things can go wrong.

Auto-debit by the card issuing bank (where we have the SB account) can fail at times and we can't go legal way when it fails. However, NACH mandate doesn't fail (it can fail due to lack of funds, though). Even if fails, we can take things to court.

Some cards allow NACH mandates. Ex: Axis, OneCard, etc.

For cards without NACH mandates (such as ICICI), I'd recommend scheduled NEFT to settle the payment. Hardly takes a minute. NEFT has legal backing too!

I use a combination of scheduled NEFT and NACH mandate when I make large purchases. The MAD (plus a good portion of due) via scheduled NEFT and the rest is taken care by NACH.

Paying in advance (before or just after the bill generation) is highly recommended too.

 

[Gaara]

And me manually tracking my bills with Google Keeps 🤓

 

[HumorSimpson]

View attachment 46953
And me manually tracking my bills with Google Keeps 🤓

no need of manual checks. CRED is able to track all.

 

[Dad0h0j0]

Thanks for sharing and sorry about having to go through this.

Almost every month, I hear something similar. Banks make profits from delayed payment. So, it is important to be alert and also to be aware of where things can go wrong.

Auto-debit by the card issuing bank (where we have the SB account) can fail at times and we can't go legal way when it fails. However, NACH mandate doesn't fail (it can fail due to lack of funds, though). Even if fails, we can take things to court.

Some cards allow NACH mandates. Ex: Axis, OneCard, etc.

For cards without NACH mandates (such as ICICI), I'd recommend scheduled NEFT to settle the payment. Hardly takes a minute. NEFT has legal backing too!

I use a combination of scheduled NEFT and NACH mandate when I make large purchases. The MAD (plus a good portion of due) via scheduled NEFT and the rest is taken care by NACH.

Paying in advance (before or just after the bill generation) is highly recommended too.

I will keep this in mind, thanks man

 

[Dad0h0j0]

View attachment 46953
And me manually tracking my bills with Google Keeps 🤓

nice idea. 😁

 

[Gaara]

Thanks for sharing and sorry about having to go through this.

Almost every month, I hear something similar. Banks make profits from delayed payment. So, it is important to be alert and also to be aware of where things can go wrong.

Auto-debit by the card issuing bank (where we have the SB account) can fail at times and we can't go legal way when it fails. However, NACH mandate doesn't fail (it can fail due to lack of funds, though). Even if fails, we can take things to court.

Some cards allow NACH mandates. Ex: Axis, OneCard, etc.

For cards without NACH mandates (such as ICICI), I'd recommend scheduled NEFT to settle the payment. Hardly takes a minute. NEFT has legal backing too!

I use a combination of scheduled NEFT and NACH mandate when I make large purchases. The MAD (plus a good portion of due) via scheduled NEFT and the rest is taken care by NACH.

Paying in advance (before or just after the bill generation) is highly recommended too.

Thats really informative, I want to know about NEFT transfer recently I read ICICI considers NEFT payments as refund and deducts reward points/cashbacks?

 

[Dad0h0j0]

Sorry for her! This is one of the unintentional mistakes people make. And, when people hear such stories, they start demonising credit cards as horrible; you should get rid of them asap. Blah blah blah...

exactly, She closed her card after paying and still didn't trust credit card.

 

[_na_cheese]

View attachment 46953
And me manually tracking my bills with Google Keeps 🤓

Same man. Excel sheet, google keep and cred. And always 1 rs extra.

BTW you've got top notch music taste.

 

[Deleted member 27665]

Hi, so this is story of my friend back from year 2022.

She has salary account in SBI for almost 3-4 year. and in 2021 they provide her Entry level credit card (unable to remember the name of card but it was IRCTC card)

They set up the card and don't know intentionally or unintentionally set up auto as Minimum Bill payment. She was paying most of her payments through Bank UPI. but did around 3000 Rs. transaction on her card. and automatically minimum due is paid off. she didn't check her mails for statements, SMS saying auto debit has been done and she ignored. I think i show her card statement sometimes later I refer her CRED (I was greedy for that 250 rs cashback) then i see her statement it grew to 60k-61k.
I don't know how she missed it, she is usually good with finance basics, Investing regularly in SIP, Had emergency fund, not doing any impulse buying. she paid off that 60k.

So i learn that, Pay bills totally, Not minimum dues. & How much people seems financially good, they makes mistakes. (not checking statements).

Thanks to her for providing us SBI credit card instant discount offers.... Really appreciate it 👍

 

[Dad0h0j0]

Same man. Excel sheet, google keep and cred. And always 1 rs extra.

BTW you've got top notch music taste.

why extra 1 rs.?

 

[_na_cheese]

why extra 1 rs.?

Shagun k.

Taaki Sab Shubh Shubh ho.

 

[Dad0h0j0]

Thanks to her for providing us SBI credit card instant discount offers.... Really appreciate it 👍

Yeah people like her helps with others with LTF and cashbacks..

 

[Gaara]

why extra 1 rs.?

Same My dad also always pays 1/- extra 😂

 

[akshayhs]

There is a difference between credit discipline and financial discipline. Financial discipline is what people without credit cards worry about. But what people with credit cards ignore is credit discipline. It is your duty as a cardholder to continously monitor your statements, outstanding amounts etc without relying on the bank to do it for you.

Both of my HDFC cards are set on AutoPay for minimum amount due. But I have not yet paid any interest or any other chatges because I have 3 different apps that triggers an alarm 3-5-7 days before a card's payment deadline.

 

[Dad0h0j0]

There is a difference between credit discipline and financial discipline. Financial discipline is what people without credit cards worry about. But what people with credit cards ignore is credit discipline. It is your duty as a cardholder to continously monitor your statements, outstanding amounts etc without relying on the bank to do it for you.

Both of my HDFC cards are set on AutoPay for minimum amount due. But I have not yet paid any interest or any other chatges because I have 3 different apps that triggers an alarm 3-5-7 days before a card's payment deadline.

Yeah true, Cred really helps to remind payment through Whatsapp and app notifications (3 Times Minimum) i mostly track my payments through cred only. and 100% agree on your view on Credit discipline.

 

[rafzy]

View attachment 46953
And me manually tracking my bills with Google Keeps 🤓

Same here bro. I too track everything using google keep. Atleast it gives the sense of I'm in control and not leaving it to an app to fetch and bring the details back. I use the checkboxes in keep so that as and when I make a payment, I click it as marked.

 

[Vishals_Ind!]

one has to be careful while registering for auto debit /NACH mandate for card fee payment, I have observed that by default "minimum due" is selected instead of "full payment".

 

[Gaara]

Same here bro. I too track everything using google keep. Atleast it gives the sense of I'm in control and not leaving it to an app to fetch and bring the details back. I use the checkboxes in keep so that as and when I make a payment, I click it as marked.

View attachment 46957

Awesome 😍
Yes, apps use our SMS to track bills and they don't always track it properly so, I manually enter every purchase to google keeps and having that widget is more convent to see it on home screen.