VM Balance Transfer Offers, order of repayment.

Dandytf

re posted due to recent lack of Interest.
from Virgin Money -allocation of repayments.
We will always pay off existing balances that appear on your statement, before any new transactions.

Does this include Existing and New Balance Transfer Offers.
I only have final 2 payments to make to clear in use Existing offer.
I since have a New offer which I only have until end of Sept to take advantage of.

I need to understand that my DD repayments continue to reduce Existing Item rather than any New Items.
Both Existing and New offers are Zero percent for upto almost 12 moths, maybe my question is irrelevant. 

thanks

Brie

So say you have £200 on your old 0% deal and were planning to pay £100 in each of Sept and Oct.

And then you take out £5k on a new deal this month.  

The £5k will show on your Oct statement so the £100 you pay this month will go towards your £200 deal.

In October you will need to make the minimum payment based on the £5100 owing which (assuming 2% min) means you'll need to pay £102.  This will clear the final bit of your current £200 deal and knock £2 off the £5k one leaving you owing £4998 as the balance for the November statement.

Does that answer the question?

Dandytf

thanks
I was repaying 358 to VM's 1st 0% offer, 502 to finish, leaving Zero balance from Late Oct'.
As kindly advised then If I were to 'make use' of New offer, then it could be Min of New Balance+250 to clear '1st offer/balance'
This may open up unexpected advantage as I could Reduce 358 to 252- 133 'Saving' this month.
Only to Decide if latest offer is required.

Brie

Dandytf said:

thanks
I was repaying 358 to VM's 1st 0% offer, 502 to finish, leaving Zero balance from Late Oct'.
As kindly advised then If I were to 'make use' of New offer, then it could be Min of New Balance+250 to clear '1st offer/balance'
This may open up unexpected advantage as I could Reduce 358 to 252- 133 'Saving' this month.
Only to Decide if latest offer is required.

Confused!!!  If you have £502 to finish on the 1st offer that needs to be pad in Oct then that still needs to be paid.  That may be more than the minimum payment required should you take out another offer at 0% but if you don't clear that 1st offer then you'll get the dreaded interest added on. Which obviously you don't want!!!  But the minimum payment won't be calculated based on 2 different offer balances it will be done on the 1 overall balance on the card.

The thing to ask yourself too is "why do I need a 0% offer?"  If the answer is that the fee to get the offer is significantly less than the interest you can earn by popping that money into a saving account well that's fine.  Likewise if it's to reduce the mortgage and gain on the interest being charged there - fine.  But if it's because money is tight and you are bouncing from one CC to another to survive then I suggest you need to put a budget together using the statement of accounts on the debt free board.  

Sorry if I've missed the mark on either point.

molerat

If you take on a new offer then the min payment will be x% of the total on the statement but payments will go against the earlier offers and only go towards the new offer if all the earlier offer is paid off.

Dandytf

Id'e expect both offers to be visible per offer, normally underneath Total OS balance.
What I'm going to do is wait until 2nd last payment has been debited from 21st Sept, I've reduced DD down to 250.
I don't Expect final 252 to  incur Interest even if I use 0% balance transfer from Non VM card using 2nd O% offer.
This is why I was asking, I think my concern is more from    Mixing Balance Transfers with purchases which I'm not this time.

molerat said:

If you take on a new offer then the min payment will be x% of the total on the statement but payments will go against the earlier offers and only go towards the new offer if all the earlier offer is paid off.

Though New offer doesn't incur any Interest, or does it until Ive cleared 1st offer balance.
Both offers run until Mid '24 though had and have Different Limited Start Dates.
I be best to think of Any repayments going to One balance (from both offers)

thanks

feynman33

FYI come the end of september when the offer expires you'll just get a new offer and the 0% will go a couple months further into 2024...

Dandytf

feynman33 said:

FYI come the end of september when the offer expires you'll just get a new offer and the 0% will go a couple months further into 2024...

I think latest offer Is my new offer, I checked Natwest with m2 macbbok Air, my biggest balance, Interest isn't much of saving, not sure if I'll need to use VM offer as it doesn't include purchases as Transfers or Money Only.
Maybe I could make use and Lower Overdraft, though think it may need some Isa withdrawel.

feynman33

I dont follow you, but just letting you know that in october VM will offer you the same deal again to be used by the end of november...

Dandytf

feynman33 said:

I dont follow you, but just letting you know that in october VM will offer you the same deal again to be used by the end of november...

Hopefully a new offer is made, though seems very soon from Aug 23 -Late July's '24 offer.

thanks

Dandytf

@feynman33

from your kind reply 13th Sept '23.
e-mail finally rec from VM 04/12/23
 

Nice surprise after being one day late with final DQ DD .
Thankfully VM re instated original 0% offer DQ is fully repaid only 16p interest to clear.

thanks