0% purchases

mflinster

Recently got a 0% purchases card for 27 months. Going to Florida in a few months and are going to purchase the theme park tickets on it. Now if we spend £1000 on tickets and pay off the minimumt payment each month would the balence clear in 27 months ? Complete noob to credit cards never had one before so abit scared about using one :undecided any advice would be greatly received. Thanks

Oakdene

No, the minimum payment will be a the greater of a certain % of the balance or a set amount (e.g £20.00). If you wish to pay it off in 27 months you will need to pay £37.03 a month which will be greater than the minimum payment. I would advise setting a direct debit up for the £37.03 each month.

MallyGirl

it depends on the T&Cs of the card. The minimum payment might be 1% or 2%. Basically it sounds safest if, as a beginner, you work out how many months are left of the 27 months when you buy the tickets and then divide the ticket price by that number (minus 1 in case you have the dates slightly off) and pay that much each month.
So £1000 on tickets and 21 months left to run on the offer.
1000/20 = £50 per month to pay it off in time.

bengal-stripe

Many cards are just asking for 1% of the balance as minimum payment. In this case with £1000 on the card, that would be 10 quid a month. Obviously that amount won't clear £1000 in just over two years. You will have to pay more than the minimum if you want to be debt-free at the end of the promotional 0% deal.

Once you're back from your trip and do not spend any longer on the card, divide the outstanding balance by the remaining number of months. That amount will be your monthly payment.

No_6

They want you to spend up to your limit and if you keep
up with the minimum payments , THEY may increase your limit.

These are great cards for spending money which is not yours and
some even give you cash back for using THEM

Just remember what you spend has to be paid back b4 the 0% deal ends
so budget !! put the money into some where ???

and pay it back b4 0% goes to 18% or higher