Interest after promotional period

benish

Hi, I have a small amount on a credit card for some white goods I had to purchase recently due to some others breaking. The card had 15months 0& on pourchases made in the first month (or 2) of the account opening. The amount outstanding is currently earning no interest, and I'm paying back the minimum payment each month as per the terms.

If I spent my weekly Asda shop on my credit card and then paid it back straight away, this would count as my minimum payment, rather than having to pay £25 quid every month, but how would interest be counted? I'd be charged interest on that Asda purchase but I'd be paying it straight back.

Or would I owe interest on the most recent purcahse and my payment pay off transactions that were 0% and spent chronologically the furthest time ago!?

Sorry if I don't make any sense, I'm just trying to reduce all my monthly outgoings whilst on Furlough!

Thanks

[Deleted User]

You'll pay interest on the purchase from transaction until you pay if off.

However, if you make payment before it statements, the payment will come off the promo balance, so leave it on there until your next statement.

There's a couple of cards which waive the interest if all interest bearing balances are cleared in full, leaving the promo intact, but you haven't said which card you have.

benish

Thanks for the reply,

Sorry I thought I said which account. 

It’s an MBNA standard credit card

mwarby

Hopefully while your furloughed and stuck at home your outgoings should be dropping. I would try switching spending to debit card and making the minimum repayment, if you don’t you may have an problem debt when the interest free comes to an end (especially if this downturn ends the glut of balance transfer deals)