General Chat

good morning everyone.
my employer is changing my pay date from 4 weekly to monthly, so i got in touch with all my direct debitor, to change the date of my direct debit payments, most of them were fine and just said thats fine but, my mortgage lender is going to charge me an extra £60 becase of the extra interest, as instead of paying it on the 1st of everymonth i now want to pay it on the 16th instead and they told me because i will be paying it 15 days late thats why i have to pay the 16 days interest which will be an extra £ 60 also my council tax office said the same, i am really annoyed about this as i cant see why its going to make such a big difference as it will still be paid that month

That's really annoying. If its a one off it might be understandable as they are due approx 6 weeks payments in one hit. If they are going to charge more each successive month, something is deffinately off! Hope you go back to them for an explanation

DET

Hard though it is it's understandable.
You are telling them you will start being paid your salary 2 or 3 (mainly 3) days late, however you are asking them to wait an extra 15 days. You can understand that they would have doubts about waiting an extra 2 weeks. They will be thinking why should they lose money and why can't you pay them on the 4th.

Sorry if it offends I really don't mean to just stating facts as they will see it.

morning det,
thanks for your reply, yes it is just a one off as it should be due to be paid on the 1st i will be 15 days late thus incurring 15 days interest, when the chap on the phone told me this i asked if i could spread the extra cost over a few months, but he said by doing so it will go down on your file as missing a payment and will in future affedt my credit eg if i ever wanted to borrow or get credit in the future!!!!

I wonder if your employer would be willing to cover the extra 1st month payment? They are the ones who instigated the change to calender month payments afterall!

Or.....if money is going to be tight, could they advance you the £60 and reduce your salary by £10 for for 6 months so you pay it back?

DET

hi thanks for your replys i rang the wages office and explained to them but they just said noone else has had any problems and that a lot of people have gone from weekly to monthly pay without any problems, and pat i wouldent be able to pay them on the 4th as i wont get paid untill the 16th of the month thats why i wanted it changed if it had only been a couple of days i would have left it alone

MY OH'S PAY DAY WAS CHANGE A FEW YEARS AGO
WE WENT TWO ONTHS WITHOUT ANYMONEY
HE COULD OF HAD AN ADVANCE BUT NEEDED
PAYING BACK ON FIRST PAY DAY WHICH WAS IMPOSSIBLE

Couldn't you really tighten your belt and make sure there is enough to cover these two bills on the first of every month? It's amazing how you can cut down for a few weeks if you have to.ie live off your freezer and cupboards. Don't go out or buy any extras.
Maybe not possible in your case though.



Marion

Are you actually going from 4 weekly to monthly? i.e from 13 pay packets per year to 12? Are you getting the same for your months pay as you got for your 4 weeks pay? Just interested. Clever employers if so.

Patricia

I would speak to your bank - explain what is happening and ask them to allow a small overdraft facility - to cover to two payments that are causing the problem - I am sure your bank will not charge £60 for an overdraft facility for a few days -


Irene

thanks to all for your replys, it will sort itself out no doubt as its only for the first month, just annoying though to have to be out of pocket for something which is not my fault. and ann yes i am going from 13 pay packets to 12 though dont know how it will work as doesnt start till november, i would have thought though that they would just take your yearly pay and divide it by 12 but am i wrong?
pat

Pat,

So you understand the situation, perhaps you could ask if you are to be paid 1 x 12th of yearly income, or if the daily rate is going to be multiplied by 31 or 30 etc, depending on the number of days in the month. It would enable you to budget your way through each month. (Both of these methods are used for pay by different employers.)

Maybe the simplest option would be to ask for a short term overdraft facility with your bank, to tide you over the shortfall, so you could leave the direct debits as they are. An arranged overdraft would be cheaper than just going overdrawn.

Elisabeth

I think the 'normal' way would be to take your annual pay and divide by 12 instead of thirteen, that way you get the same amount in February as you get in longer months.