Credit Card Balance/Money transfer

rubble2

I have a CC which already has a 0% balance transfer in operation, this is due to finish in about 9 months.
I have just had an offer on the same card for a Money transfer over 2 years at 5.9%apr, I am considering using this offer as part payment for a replacement car, it will be for about 50% of the car cost with the balance coming from savings.
Once both offers on the card are in operation I am wondering how things operate in practice, I am of course making regular payments to cover the existing balance transfer but I notice in the terms and conditions that payments received will go towards the interest attracting balance on the card in rather than the 0% balance

So, in practice, if I continue my existing payments for the balance transfer but add in enough per month to clear the money transfer after the 2 year period will all the payments initially go towards the  money transfer balance and is so what will happen to the balance transfer total when that is due to expire?

I may be over thinking this but would appreciate any observations/advice.

Thanks

martinbainbridge1975

normally it goes to the highest interest rate first, however if everything on the card is at 0% it may be worth a look on the statements as there may be a section that tells you about payment allocation / distribution

CliveOfIndia

martinbainbridge1975 said:

normally it goes to the highest interest rate first, however if everything on the card is at 0% it may be worth a look on the statements as there may be a section that tells you about payment allocation / distribution

This is correct, however in this scenario the OP said that the MT was at 5.9%

Check the T&Cs of the card carefully, but how it usually works is that the stated minimum payment is enough to cover the minimum on both balances.  Anything over the minimum will be prioritised to the higher-rate debt.

Nasqueron

You could ask the bank directly and confirm, or read the Ts & Cs

It is possible they would allocate to the interest bearing one first, then you would need to be careful as the 0% one wouldn't be paid off