Paying Balance Transfer rates first and purchases last

sd1664

I just found out from my credit card company that all monthly payments go towards clearing any balance transfers first at the low rate and that any purchases made would be charged at the higher standard rate. Meaning, that they are making more money even though any purhcases using the card are more recent. This wasn't made clear to me when the sales person called offering me a great deal to transfer money from another credit card. I think it is unfair and totally misleading. It's going to take me a long time to clear this all.

Anyone else had this problem? Is there anything that can be done?

Thanks
S

Tixy

Pretty much all cards have always been like this, and it will be detailed in your original t&C. However gradually some cards are changing so that the more expensive debt is paid off first. This is not because the companies are being nice but because due to lobbying to get the rules changed some cards have decided to switch in advance of enforced changes. MBNA card changes

Its always advised not to spend on a balance transfer card (except if the APR is identical) - http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#never

Are you in a position where you could transfer all the debt to a new card? if so you could then make any future purchases on the current card and just keep the transfer on the new card. Obviously this will depend on your financial position as to whether you could get another card, or if you happen to have an empty card already who will give a good BT deal.