Spending on a 0% card

Ste_critch

Hi all,

I've done a search on both google and MSE and confused myself more than i was already.

I always understood that if you spend on a card you have a 0% balance transfer on you void the 0% rate because you will pay interest on some or all of the balance on your card which this sort of confirms in my mind

"Credit cards let you spend, shift debt or withdraw cash but banks must put repayments towards the most expensive debt first. So spending on a balance transfer card isn't as bad as it was, as repayments first clear the spending, but it can still cost, as you only avoid interest if you pay off the FULL balance, including transfers and purchases."

To give you the full story I have bought all our christmas gifts early in summer sales and transfered them to a 0% card in my Mrs' name, she doesn't understand finances at all and decided to spend on that card, im now worried that i will have to transfer it back to a card in my name with a 0% deal costing us another transfer rate on the balance.

If i pay off the £30 or so she spent on it today off plus the minimum payment on the balance transfer will we be back to where we was before she spent the money? or will I have to transfer it to another card.

thanks in advance

LuSiVe

There is no 'minimum payment on the balance transfer', just a minimum payment for the whole balance.

You need to pay whatever she spent, plus, as it will attract interest from the date of purchase to the date paid off, enough to cover the interest on that. If the minimum payment is more than that then pay that.

It'll end up being less than any balance transfer fee so all's good.

[Deleted User]

No. Spending doesn't void any rate. It simply means you pay interest on the purchases, unless you clear the entire balance, including the BT.

Once the £30 appears on the statement (not before), pay that (and the interest) off. You will have little interest to pay the following month, but no more after that.

Ste_critch

Thanks guys!

You've eased my worries a little, I'll have to apologise to her as i gave her a bit of a telling off for spending on it when I told her not to.

Thanks again!!