Paying down credit card debt that already has an intrest free amount

phinn79

Hi, Hope you guy s can help.


I've gotten myself into a situation where I've spent on a card I balance transferred onto. I have an interest free amount on the card due to expire in June 2019. but I have since spent quite a few thousand on this card.


I've recently taken out another 0% card to transfer the balance onto but the credit limit only covers a third of the total debt on my first card. My question is, if I transfer up to the maximum I can onto the new card, will that money be taken from the balance transfer amount already on my first card rather than money I have spent?


Thanks

MallyGirl

since a balance transfer is effectively paying in money to the first card it should be applied to the debt with the highest APR, which should be the spending, but it is worth checking the T&Cs for your card as there are a few funnies out there. Or give them a call and ask

[Deleted User]

A payment will always go towards the highest rate balance.

MallyGirl

there did used to be at least one that went against the oldest debt -that caught a few people out

phinn79

Thanks guys,


I read online that payments were taken from the balance transfer amount first leaving me with same spending debt but it was an old article. If this is the case then that really helps me out as I intend to carry on paying as much as I possibly can each month to clear the spending debt as soon as possible. Would I be wise do you think to take out a second interest free card to clear off the rest of my spending? effectively this should make all my borrowing interest free and if so I can pay it all off lot faster I hope.


Cheers

MallyGirl

phinn79 wrote: »

Would I be wise do you think to take out a second interest free card to clear off the rest of my spending? effectively this should make all my borrowing interest free and if so I can pay it all off lot faster I hope.

Cheers

If you can get it all on 0% that would be helpful.

I'd avoid the use of the phrase "clear off rest of spending" as you aren't clearing it, you are just moving it to better terms (if you can get them).

One more application won't hurt

[Deleted User]

MallyGirl wrote: »

there did used to be at least one that went against the oldest debt -that caught a few people out

That is only in the case where the APRs are the same. In that instance it can be the oldest debt, the newest, the one that ends first or any other criteria.

With different APRs, it's always the highest.

JimmyTheWig

phinn79 wrote: »

I read online that payments were taken from the balance transfer amount first leaving me with same spending debt but it was an old article.

Things have changed since then.

phinn79

Thanks for your help guys, Glad I joined now. I think I will let things settle down for a month or so and then apply for a second card to transfer the rest of my spending to. Then just to pay it all down as quickly as I can.


Appreciated