1st Balance Transfer, Advice Needed Please!

Earthwrm

Hi Everybody,

I am looking to do my first balance transfer to reduce my credit card interest payments. My existing card has a chunk of debt which accrues interest, but also a chunk which is interest-free for another 12 months or so.

If I take out a new balance transfer card, how will I know that it is my 'high interest' debt which will be transferred and not the interest-free one? Is it automatic that the highest interest debt is the one which is moved across or would I need to request that? Sorry if this is a silly question, but I've never done one before and it would be just my luck the wrong one would be transferred! I have done a search on previous posts but haven't found anything, but perhaps there are key terms which I don't know about.

Thank you in advance, I hope you can help!

[Deleted User]

Payments always go to the highest rate debt, assuming everything has statemented..

Earthwrm

Hi ZX81,

Thanks for getting back to me. Ah, I see now. So what you are saying is that a balance transfer is effectively just paying off one card using another, and therefore the highest rate debt is automatically paid first? I hadn't thought of it that way. I'd conjured up some convoluted system in my head. You can see I've never done this before! D'oh!

Thank you for clearing that up for me.