RBS card query: Repayments

I have just received my RBS statement and it says "Summary of Balances" on the back. Here, I have three types of balance, "Purchases", "Cash" and "Special Offers". The only two that I am paying for as of now are the first two.

My cash interest is 1.873% and it also has the lowest balance, so I'm looking to pay that element of it first. However, whatever money I use to pay off the total balance is, as you will all know, allocated in a particular order of priority. In my case, the priorities list is as follows:

1. Interest on Special Offers (Which right now is zero).
2. Other interest, any fee and charges (My combined interest this month is £15.20)
3. Special Offers (Which again, should be zero)
4. Purchases and balance transfers (Which forms the majority of the total balance, but it's the part that is the lower interest)
5. Cash advances and money transfers.

So in effect, any payment I make this month makes no odds to my cash balance as it will all go towards the Purchases and balance transfers balance (if I'm right about how this works). Therefore, the question I want to ask (finally) is: Is there any way I can instruct RBS that with my payment I want to pay off the cash advance balance first, rather than the purchases and balance transfer balance?

Sorry if it's too long a post.



  • poppy_f1
    poppy_f1 Posts: 2,637 Forumite
    First Post Combo Breaker First Anniversary
    your right about how it works, and tbh its very unlikley RBS will change the way the payments work for you, best thing to do then it give them a quick call
  • Gray-Fox
    Gray-Fox Posts: 312 Forumite
    I rang them and they said they were not prepared to change it.
  • latecomer
    latecomer Posts: 4,321 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Move it to another card on a balance transfer and then avoid withdrawing cash.
  • nickmack
    nickmack Posts: 4,435 Forumite
    First Anniversary Combo Breaker First Post
    Gray-Fox wrote: »
    Is there any way I can instruct RBS that with my payment I want to pay off the cash advance balance first, rather than the purchases and balance transfer balance?

    No, this is one of the ways Credit card companies make money out of you.

    You have the balance at the highest rate 'stuck' on the card, because all payments go towards interest and lower rate balances.

    Please read Martin's Credit Card article on Spending where he talks about allocation of payments and the expense of withdrawing cash.

    If you can't afford to pay the entire balance, the only way is to do a balance transfer.

    If you're in dire straits and may need the card for additional purchases or cash withdrawls, you might want to consider a Nationwide Credit card, as they have a 'fair payments allocation', where the balances with the highest APR are paid off first. Meaning if you accumulate balances at a higher rate, they can be paid off before your low rate/interest free balance transfer.

    I suggest if you're struggling with your finances overall, you should visit the Debt Free Wannabe board for help.
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