Money and Balance Transfers

jordanw_2

Good Evening!

Just a bit of advice with regards to a how Balance and Money transfers work (apologies if this is a obvious question).

It's basically how the introductory offers work, the card offers 0% on balance and money transfers. 18months on balances and 14 months on money.

I was looking to do both to clear and close a credit card and clear my overdraft.

How I worked out my repayments to use the full interest free period was as follows (excluding fees for ease):
£800 balance transfer / 18months = £45 a month
£2000 money transfer / 14months = £143 a month

Would it work out that for the first 14months I'd pay £188 a month then £45 for the remaining 4 months?

Terms:
Balance transfers 0.0000% (monthly rate), 0.0% (annual rate) for 18 months then 1.8053% (monthly) 23.9% (annual)
The introductory rate for balance transfers only applies to transactions made within 60 days of the account opening date.

Money transfers 0.0000% (monthly rate), 0.0% (annual rate) for 14 months then 1.9412% (monthly) 25.9% (annual)
The introductory rate for money transfers only applies to transactions made within 60 days of the account opening date.


We allocate your payment to amounts that are charged at higher interest rates before those that are charged at lower interest rates.
• If we charge interest at the same rate on different parts of your balance, we will allocate your payment to the introductory rate first.
• If two or more introductory rates are the same we will pay off the introductory rate with the earliest start date first.
• If the introductory rates have the same start date then we will pay off that part which will be charged at the highest standard rate at the
end of the introductory period.
• We will then apply your payment to balance transfers, cash advances, money transfers and purchases, in that order.

grumbler

jordanw wrote: »

How I worked out my repayments to use the full interest free period was as follows (excluding fees for ease):
£800 balance transfer / 18months = £45 a month
£2000 money transfer / 14months = £143 a month

Would it work out that for the first 14months I'd pay £188 a month then £45 for the remaining 4 months?

Yes, but you don't have to pay £45+£143.
E.g. you can make smaller payments while 0% lasts and then pay a lump sum at the end.
Or you can make equal payments £2800/18=...

There are many options. What you have to is:

• Make at least minimum payments

AND

• Repay £2000 in total before 14 months expire

AND

• Repay the rest before 18 months expire.

jordanw_2

Thanks for the response, it's much appreciated! I guess I just wanted piece of mind to know I'm not gonna screw myself over!

As long as I know that those terms mean exactly what I thought they meant then I'm happy!