Question About 0% Promotional Rates

Conan1Sett

When you take out a credit card that has a 0% promotional rate, does interest get charged on the balance already accrued from the date that the promotional rate ends, or does interest only get charged on the balance accrued after the promotional rate ends?

So if I have a balance of £100 when the promotional rate ends, do they start charging the new interest rate on that £100 or is that still safely 0%?

[Deleted User]

Interest is charged in a daily basis. So your balances attract interest at the relevant rates applicable at the time.

Conan1Sett

Deleted_User said:

Interest is charged in a daily basis. So your balances attract interest at the relevant rates applicable at the time.

But what if the balance was accrued before the promotional rate was ended? 

GrumpyDil

Simple answer is yes, when the 0% period ends you pay interest on the entire balance. 

[Deleted User]

Conan1Sett said:

Deleted_User said:

Interest is charged in a daily basis. So your balances attract interest at the relevant rates applicable at the time.

But what if the balance was accrued before the promotional rate was ended? 

It'll attract interest at the relevant rate for that balance. So if the promo rate has ended, it'll attract interest at the standard rate.

Conan1Sett

Deleted_User said:

Conan1Sett said:

Deleted_User said:

Interest is charged in a daily basis. So your balances attract interest at the relevant rates applicable at the time.

But what if the balance was accrued before the promotional rate was ended? 

It'll attract interest at the relevant rate for that balance. So if the promo rate has ended, it'll attract interest at the standard rate.

So if I default on this credit card could I lose my mortgage?

[Deleted User]

No.

Why do you think that?

Your question has gone from asking about credit balances to repossession. They're entirely different things.

Conan1Sett

Deleted_User said:

No.

Why do you think that?

Your question has gone from asking about credit balances to repossession. They're entirely different things.

Because if I can't handle the interest and I can't pay then I just presumed I might be liable to lose my property? 

[Deleted User]

No. Your credit card debt isn't secured on your home.

cymruchris

Deleted_User said:

No. Your credit card debt isn't secured on your home.

That doesn't stop them placing a charging order on your property if you default. So you may not lose your home, but they'll have their money's worth when it comes to selling the property. It's a commonly misunderstood myth that because credit card debt is labelled as unsecured - that there's nothing anyone can do about it if you refuse to pay. If you have a house with a mortgage - they still have options to recover the debt. 

To the OP - maybe if you can expand on the detail of your predicament - we might be able to offer a little more constructive advice. What's the level of your debt? What interest rate will you be reverting to? How long do you have left on your 0 percent? Have you checked eligibility checkers for other 0 percent deals? (To be fair if you're carrying a significant balance as a ratio of income - this last option may not throw up any obvious 0 percent cards - but there are a few sub-prime cards who offer short 0 percents of 6-9 months and then go to horrendous APR's - if you could clear your debt over this short period of time - it's an option to consider).