Bank of Scotland 3.94% and 9 Month interest free....Question please?

J-Pop

Hello,

I have been trying to get all my debts into one payment over the past year and currently have a bank of Scotland Credit Card with a debt of £5.000 i transfered to the card at a rate of 3.94% until the debt is cleared off.

I also have a Barclaycard with £2.000 on it and have a few months left at 0% interest.

I pay payment protection on both cards and this takes up a good chunk of my payment i make each month.

I got another deal from Bank of Scotland for 9 Months interest free and was thinking of transfering the Barclaycard balance so i only have one card left.

I was just wondering how they work out how much money goes to each deal when i make a payment.......if i mad a payment of £200 to the card.....how much would got towards the interest free balance and to the 3.94% deal?

Anybody know how it works?

Appreciate any advice.

Thanks.

CannyJock

Why are you paying PPI on both cards?

J-Pop

CannyJock wrote: »

Why are you paying PPI on both cards?

Hello,

Should i not be paying payment protection for every card i have?

I had 5 cards running at one time and was paying PP for each card?

david39

I don't know the exact arrangement for how BOS allocate their incoming payments, but I'm pretty certain it will be the same as most other banks - that is, the payment will be made to the balance that is carrying the lowest rate of interest.

If you transfer your Barclaycard balance then the original BOS balance carrying the interest will not reduce. It will gradually increase because interest will be accumulating on it at a compound rate - each month you will be charged interest on the original balance and on the accumulated interest from previous months. It may, however, be that the interest you save by having £5000 at 0% rather than at whatever rate Barclaycard will charge you when their promotional rate ends will be more than the interest being added to your £2,000 BOS balance.

The details of order of priority for incoming payments is usually shown somewhere in the small print on your statements or certainly in the T&Cs.

Perhaps you could apply for another 0% card from another issuer and transfer the balance to that.

I would question how much value you are getting from the PPI - a quick look around relevant posts on this site will show you why you should be reconsidering whether it is worth it.

J-Pop

Thanks, i will try and have a look around and find some info.

Cheers.