Allocation of payments, help!!

I have a 0% balance transfer offer through from my bank for 10 months with 0% handling fee. I currently have £1,500 outstanding on the account and wish to transfer over the balance of another card to this one using the offer. My allocation of payments detail is as follows:
1. Interest on special offers
2. other interest fees and charges
3. special offers shown o the statement
4. purchases and balance transfers shown on the statement
5. advances and money transfers

My question is will i be paying of the 0% balance transfer first or the £1500 debt already on the card? My thinking is it will be the £1500 as this is a special offer with 0% interest. am i correct??

Cheers
Jock

Comments

  • izools
    izools Posts: 7,513 Forumite
    1,000 Posts Combo Breaker
    You will be paying back the 0% offer first.

    Until the 0% transfer is clear you will be incurring the standard APR on the full £1500 balance already on the card, every single month ;)
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • jockass
    jockass Posts: 12 Forumite
    thanks izools!
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