0% cash advance to pay down older debt?

polly_

Hi everyone, new member here so I hope I’m doing this right!

I have a balance that equates to around 40% of my current credit limit on my credit card but it’s a pretty high interest rate. They’re currently offering a 0% cash transfer option for 6 months, with a 3% fee. What I’m wondering is, if I take the cash advance equal to the current balance, then pay off the current balance with the cash, will they allocate that against the older debt? What I’m hoping to do is to pay the balance off within the 6 month interest free window, rather than paying the extortionate interest rate!

Im not super savvy when it comes to this sort of thing so any help would be greatly appreciated. Thank you very much in advance

[Deleted User]

They'll allocate it to the highest rate debt.

If you have more than one balance at the same rate, it will be allocated according to the terms of your card.

polly_

Deleted_User said:

They'll allocate it to the highest rate debt.

If you have more than one balance at the same rate, it will be allocated according to the terms of your card.

Thank you, I hoped that would be the case!

born_again

Take the cash advance. Transfer to another bank, wait till you get your next statement and they pay it back in. Thats what I do.

jonesMUFCforever

0% for 6 months with a 3% fee is expensive.
Are you not eligible for any other promotional rate cards?

SuperAllyB

born_again said:

Take the cash advance. Transfer to another bank, wait till you get your next statement and they pay it back in. Thats what I do.

Why wait for the next statement? Surely any payments go to statemented balances first anyway.

polly_

jonesMUFCforever said:

0% for 6 months with a 3% fee is expensive.
Are you not eligible for any other promotional rate cards?

No unfortunately not, otherwise that is definitely what I would be doing. My interest rate is ridiculous so 0% for 6 months works out cheaper. 

stevef65

I'm in a final year of a personal loan with 4.5% interest, can I I balance transfer a 0% credit card balance (Santander are doing one with no fee) to pay the loan off? It will save me £300.00!

jonesMUFCforever

stevef65 said:

I'm in a final year of a personal loan with 4.5% interest, can I I balance transfer a 0% credit card balance (Santander are doing one with no fee) to pay the loan off? It will save me £300.00!

No - Santander loans will not take credit card for payments.If they offer you a money transfer card then it might work.
Just to clarify - how much is the outstanding amount on your loan? Will there be an early redemption fee and if so how much? If you get a card how much of a fee will you have to pay?