2 balance transfers running alongside each other

edited 30 November -1 at 1:00AM in Credit Cards
9 replies 1.1K views
Burnley_LadBurnley_Lad Forumite
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edited 30 November -1 at 1:00AM in Credit Cards
In June of this year, I took advantage of a balance transfer offer of 0% for 15 months, which expires at the end of September 2015.

Since then I have been offered another offer of 0% on balance transfers for 13 months, which I have taken up today, and this expires at the end of November 2015.

Now that I have two balance transfers running alongside each other, I have some questions that I am hoping someone can answer!

1. When I make my normal monthly payments, which balance transfer will this money be used to pay off?

2. What happens at the end of September 2015 if I haven't paid off the balance I transferred in June 2014 - will I start paying interest at my standard rate?

3. Does the original balance transfer need to be paid off in full before any further payments I make start to reduce the balance I have transferred today?

Thanks for any advice anyone can offer!

Replies

  • YorkshireBoyYorkshireBoy Forumite
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    And the card provider is?
  • Burnley_LadBurnley_Lad Forumite
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    sorry, I didn't realise it was card-specific.

    It is a M&S Bank credit card.
  • edited 31 October 2014 at 3:54PM
    NasqueronNasqueron Forumite
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    edited 31 October 2014 at 3:54PM
    1 - if you mean you did 2 transfers to the same card with 2 offers you will be paying off a % of the total balance - though this month will not include the BT you did today, but it'll be on next month thus increasing the minimum payments
    2 - yes you will start paying interest on remaining balance once 0% expires so they'll charge you interest on the first BT you did (assuming they separate them - be best asking the bank that, that is what they are there for :) )
    3 - in theory the providers are supposed to allocate your payments to pay off the highest interest bits first so if you did 2 transfers, when 1st expires and starts earning interest the payments should go off that but if it's only 1 month before the other expires it won't make much difference as after 2nd expires you will start paying interest on that too
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  • thenudeonethenudeone Forumite
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    Nasqueron wrote: »
    3 - in theory the providers are supposed to allocate your payments to pay off the highest interest bits first

    .. which they do
    Nasqueron wrote: »
    so if you did 2 transfers, when 1st expires and starts earning interest the payments should go off that

    .. but they don't have to do that.
    Some cards will do it that way and some won't.

    For example, when I had mbna cards, their terms stated that where there was more than one balance at the same offer rate (eg: 0%), they would allocate payments to the offer which started first (even if it ended later). This can make a huge difference which is often overlooked.
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  • NasqueronNasqueron Forumite
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    Did suggest they ring the bank to confirm that :)
    the concept of a United States of Europe is right.” Winston Churchill 1930
    I think that the Government are right to apply to join the European Economic Community...” -Winston Churchill 1961
    “The future of Europe if Britain were to be excluded is black indeed.”[FONT=&quot][FONT=&quot][FONT=&quot] - Winston Churchill 1963
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  • planteriaplanteria Forumite
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    thenudeone wrote: »
    For example, when I had mbna cards, their terms stated that where there was more than one balance at the same offer rate (eg: 0%), they would allocate payments to the offer which started first (even if it ended later). This can make a huge difference which is often overlooked.

    good point. on the face of it, easiest to always leave one BT deal on a card, and then leave it in the draw/cut it up.

    on the plus side, both deals are currently 0% so you are chipping away at the debt either way...and just need to be clear, including by talking to M&S, exactly how your balance is going to be treated when the first deal ends.
  • Burnley_LadBurnley_Lad Forumite
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    Thanks everyone for your replies. I tried to ask the woman I spoke with when I was doing the recent balance transfer, but she was clearly in a foreign call centre, and I didn't understand what she told me.
  • planteriaplanteria Forumite
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    ok... it doesnt seem urgent, but call back and ensure that you speak to someone that can make you understand entirely. take a note of date and time of who you speak to, and the course of action. i write on statements so that i can refer back in the future. it's all about staying in control of these things.
  • Well, you would hope that the payments you are making, go towards the offer which ends first, but that's not the case (within banks I am familiar with).

    The payments quite rightly go towards whatever attracts the most interest, this has been enforced on every bank and building society and they must abide by this. But when there is 2 offers which are both at 0%, then the payments will be split 50 - 50 (again, in the banks I know). In my opinion, banks clearly have the facility to send the payments towards the offer ending soonest, but I think they play it dumb.

    This info should be found on your credit card agreement, if this is not made clear, then yes, take it further!
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