CC and which debt gets paid first

Chocolate_Fondant

Am I right in thinking that if you have a barclaycard with balance of say £1k and limit of £6k and you have the option to balance transfer at 0% for 6 months and you balance transfer that your payments are knocked off the higher rate balances first ie the £1k?

Are there any pitfalls with this if you are paying interest on another card and have no other 0% deals available for bt?

thenudeone

If you have a statement with part of the balance at 0% and part at another rate, the higher rate will always be paid off first, leaving the 0% balance unchanged.

You have to watch out you have balances on more than one different 0% offer at the same time. In that case the card company can choose which 0% offer they pay off first, and put that in the terms.

Eg:
£1000 0% til 1/4/12
£1000 0% til 31/12/12
You might want to pay £1000 off the first part on 31/3/12. If you did, the card company COULD use it to pay off the second balance, leaving only the first offer outstanding.
On 2/4/12 the first part would immediately start being charged interest.

The way to avoid this is to pay the balance off the day AFTER the 0% offer expires.

Chocolate_Fondant

That makes perfect sense thank you.