Help with new Credit Card

PQuinton92

Hi All,

I am hoping some of you finically minded people can help me, I am looking to see if I should also pay of a catalogue account with my new CC on top of my BT?

Details below,

So I applied for a new 37mnth 0% BT CC from Barclays and was approved (yay first step to debt recovery).

I have been given a limit of £2,950 on the new card and £2,400 of that will be a BT from my other credit to clear it as it no longer has a 0% BT deal.

I also have a catalogue account which has a balance of £380 and the interest rate is huge (36% ish)

either way my plan is to divide the total balance of the card over the 37 month term and get it all paid off in full so I don't have to pay the interest.

I hope I have been clear but if more details are needed let me know,

Thanks in advance guys,

Peter

PQuinton92

Just realised I forgot to mention that the 0% purchase on the new CC is for 6 months

[Deleted User]

Will the catalogue accept a card payment?

PQuinton92

Yes I have paid by card before I set up my DD with them

PQuinton92

I think I may have answered this question myself but some clarification would make me feel more confident in my decision.

I found this information on another thread which has brought me to my conclusion,

"From 26th November 2010, all credit card products will be subject to the following changes:
Payments (for new and existing cardholders) will be used to repay the balance with the highest rate of interest first. This is a complete reversal of the previous payment allocation rules and will mean that higher rate balances such as cash and purchases will be repaid before promotional balances such as Balance Transfers and Promotional Spend Offers.
Where a cardholder has more than one balance at the same rate of interest (i.e. multiple 0% offers) then payment will be applied to the offer with the earliest expiry date first."

So I can use my new CC for both BT and paying of my catalogue balance and will not incur any extra interest as long as the monthly amount paid covers the total catalogue balance within the first 6 months 0% purchase period.

Which will be fine if the following workings are correct,

BT & Fees = £2480
Catalogue = £380

Total = £2860

£2860 / by 37 = £77.30

£77.30 x 6 = £463.78

Which is more than the £380 balance so all should be good if I haven't completely missed the point.