BT 0% and new purchases

Nietskaya

I have 2 years 0% BT and 6 months 0% NP on my Nat West card. How do I make the most of the 2 years BT and pay off NP quickly? I don't understand how the bank decides how my monthly payments are distributed between the two.
Thanks for any help you can offer

StuC75

Be very carefull, its best to check the small print regarding mixing balances..

What are the follow on rate for BT's & NP's?

Generally payments are applied to the transactions carrying the highest Interest rate regardless of the date statemented \ when deal ends..

The statements will show separately what rates \ how the balance is split.

The official MSE line is to avoid mixing balances - so avoids all doubt..

Often a call to the card provider around the time that you intend to clear a 'pot' should ensure that it goes as you wish

thenudeone

In general, you should not mix purchases and balance transfers on the same card, when part of the balance is on a 0% promotion.

EG: If you have a 0% BT offer but also use the card for purchases, then you will always be charged interest on the purchases. The 21-56 days (or so) that you normally get interest free on purchases only applies if you pay the whole balance off, not just the purchases, every month.

Even if both parts are at 0% but for different periods, be VERY careful when you pay off the purchases balance. If you pay it off early, the payment could be allocated to the BT balance, leaving the purchases being charged interest in a few days time. Unless you are absolutely certain you understand how payments are allocated, wait til 1 day after the 0% on purchases ends before paying it off.