need a little help with a problem please spent on BT card

happyhero

Hi I think I understand our problem but wanted to run it by you to make sure we are not missing anything.

My wife had a overdraught going of about £1500 and got it covered with a BT.

Recently she had to find another card and managed to get the Capital One offer with a £7000 limit. She took the £1500 to cover the previous card leaving £5500 going spare. We have an offset mortgage and decided we could use the £5500 toward reducing the interest on that.

The problem is one day my wife was out and had the Capital One card in her purse and for some crazy reason decided to use it on a purchase of about £30.

I pointed out the error of her ways and we looked at our options. If I understand correctly they will now take any payments off the BT amount thus trapping the spend gaining interest charges.

After a lot of looking at the options we worked out that the charges on that amount even over a year will be minimal and not a real problem. Correct me here if I have that bit wrong.

So not too bad a problem so far, but if we then take the remaining £5500 to help the offset mortgage, to me it seems it will make no difference to the interest charges, ie it will still be only interest charged on the £30 for 1 year roughly.

Please can somebody check what I have said and confirm that what we think will happen, will happen.

Any help appreciated.

YorkshireBoy

At 1.2408% (typical) per month, we're talking 37p a month in interest (which they may round up to 50p/£1 - check your T&C's).

I would suggest a suitable punishment would be loss of privileges for 7 days, followed by a period of house arrest.