need a little advice please

chumperchops

Hi all im fairly new to the world of the credit card .
I have a card with an outstanding balance and i want to transfer the balance to another card(0% Balance transfer offer) which has a direct debit set up to take the outstanding balance on that card every month ,my question is if i transfer the £900 from card A to card B will they then take the outstanding balance from card B and the £900 from card A or are they kept as 2 separate amounts giving me the 6 months to pay off card A ?? hope all that makes sense .Lol

Quimoi

A direct debit setup to take the balance in full will clear any/both/all balances on the card.

You would have to cancel the 'in full' DD and make manual payments to the card if you only want the interest bearing part to be paid off each month. Good news is that any payments made to the card are allocated to the part of the balance which has the highest interest rate first so you can still just pay off monthly spending on the card with the BT on there.

As always it would be a good idea to replace the 'in full' DD with one for the minimum payment just in case you ever forget or are late with a manual payment.

grumbler

Quimoi wrote: »

You would have to cancel the 'in full' DD and make manual payments to the card if you only want the interest bearing part to be paid off each month.

Minimum payment is normally bigger than the monthly interest, and a DD can be set for a minimum payment. Same cards allow setting a DD for any amount.

Good news is that any payments made to the card are allocated to the part of the balance which has the highest interest rate first so you can still just pay off monthly spending on the card with the BT on there.

The bed news is that you will not get the interest waived on purchases as it would be if you paid the balance in full: The 5 golden rules

Quimoi

grumbler wrote: »

Minimum payment is normally bigger than the monthly interest, and a DD can be set for a minimum payment. Same cards allow setting a DD for any amount.

I'd assumed that the OP doesn't always spend the same amount on the card each month and so setting a DD for a specified amount wouldn't work - manual payment of the amount spent on purchases each month is the only way to clear that part.

grumbler wrote: »

The bed news is that you will not get the interest waived on purchases as it would be if you paid the balance in full: The 5 golden rules

You learn something new every day

OP - thinking about it why not do your BT from card A to card B just after you clear the monthly balance on card B - then you can do your monthly spending on card A and clear it in full with a DD each month whilst not affecting the BT on card B...

planteria

yes, moving the balance to a 0% balance transfer deal, and reducing the Direct Debit on that account to the 'minimum payment' is the way to do it.
i have 2 spending cards set at 'full balance' and 3 balance transfer cards set at 'minimum payment'.