Multiple balance transfers

magpies79

So it’s not something I’m looking for more trying to understand how they work I have a HSBC card on a 27 months 0% with 3k of a 4k limit.

when I made this months payment they are offering me a separate 12 months for any new balance transfers I make in January but how would that work how are payments allocated would all future payments go towards the 12 months interest free then once cleared go back to clearing the 27 months 0% feel like this could catch people out as potentially just over complicates things. 

For the record I’m not doing it I don’t spend on it it’s in a draw up stairs no spending just get it cleared at 0% 

Nasqueron

They should (but don't always) automatically allocate it to the debt that is subject to interest, or pay the soonest ending first if all on 0%. Say your BT was originally to December 2026 and you have this new one that would be to January 2026, payments go to the second one. I had this with M&S though who use HSBC backend I believe and they were putting the funds against the longer balance, so I complained and got £25 for my troubles. 

It could catch you out if you don't check your statements for sure but most people savvy enough to do BTs are switched on enough to check funds are being done properly.

magpies79

Yeah feel like it could over complicate things and I’m not the most organised so wouldn’t do if even if I needed to never seen it before.

CliveOfIndia

You need to check the T&Cs of your particular card.  Payments are always allocated to the highest-rate portion of the debt first, but where you've got two 0% deals running concurrently, different cards do it differently.  Some will prioritise the one that started first, some will prioritise the one that's ending first - which may, in practice, be the same thing, but not always.  It's different for different cards, but the T&Cs will tell you how payments are allocated in this scenario.

magpies79

Ok thanks appreciate the explanation 

Brie

Best thing to do is check after doing the second BT to see what BT has been reduced by your payments.  The T&Cs are rarely all that clear and if you talk to someone there's always the chance they will get it wrong.  

When I have more than one BT on a card I contact them near the end date of the one that ends earliest and ask "on what date do I pay so as to have the least amount of interest charged and not waste any of the BT term?  And how much do I have to pay on that day?"  Do this on a chat and keep a copy of the conversation.  Otherwise if talking to them on the phone make a note of the date, time, person and what they said.  That way if they have got it wrong you can lodge a complaint about being "financially inconvenienced" by their error.  

magpies79

Yeah makes sense thanks a lot 

Nasqueron

You can just look at the statements

Statement 1/1/25

Balance A £2000 
Expires 30/12/26
Balance B £2000
Expires 30/12/27

Pay £400

When you get statement 1/2/25

If A goes to £1600, great
If B goes to £1600 you know that there is an issue as B will be paid off first before A is touched but A is ending sooner