Are Natwest allocating my payments correctly?

KellyMcC

I've just checked my credit card statement and on the back it says that payments will be allocated to the most expensive debt first.
For me that is my purchases as I currently have 0% on my balance transfer but it looks like the payments I make are paying off my balance transfer. Is this right?

thenudeone

What makes you think it is being allocated in a different way to the most expensive debt first?

KellyMcC

Because my Balance Transfer isn't costing me anything becuase it has 0% interest rate but my purchases do accumulate interest therefore the most expensive debt is the purchases....

thenudeone

On most cards you only get an interest free period on purchases if you pay the last statement and the statement before in full.
When you make a payment it will pay off the (normal rate) purchases first, but you will still have borrowed some money for a time.
Despite the recent change in payment allocations, the golden rule is still the same - Never spend on a Balance Transfer Card.