Balance transfer mistake and debt problem.

Dippygoose

I’m autistic and struggle with things like this.
but I was moving some debt around to give me longer to pay as I had a strategy in place to get last my debt, paid by January.

I have £1800 on a 36 month 0% interest purchase on a Lloyds credit card this expires in October .

I’ve accidentally made a balance transfer from another card to the Lloyds at 3% AP but no transfer fee which can’t be switched back making it the primary debt that gets paid off so I’m not able to pay my 0% interest date before the promotional period expiresin October.

I’ve contacted lloyds explained the situation and we have put together this plan is it sound?

I’m going to be saving as much money as I can in my roughly 7% Zopa interest account I should be able to get about £2000 whilst still making minimum monthly payment .
Wait for my interest free period to expire making it the primary debt and then paying it off before I get hit with 25% interest rate charges or only once I should be able to get the rest of it cleared by January or sooner making me debt free.

because if I attempt to pay the 3% off, I will get hit by multiple 25% interest rate fee from the other balance before I get it paid off.

ManyWays

In general I find it is less confusing to not have several different offers on the same account, but this is a nasty little wrinkle that actually costs you money that I have not seen before.

Lloyds are not at fault here, the regulator says any payments have to first be used to clear the balance at the higher interest.

What is being proposed should work.

Dippygoose

https://forums.moneysavingexpert.com/discussion/comment/81991119#Comment_81991119

I fully admit it’s my fault autism or not had a plan to get out of this and I’d reach the point that I didn’t have to do crazy amounts of overtime to clear it.

Its going to cost me a little more but I don’t think it’s gonna cost me big because I originally thought I was going to be hit with three years worth of interest .

But with proper planning I’m hoping our plan will work.

I think the saving grace is I contacted Lloyds and talk to them and they were brilliant and I’m tackling this five months before the deadline not five weeks still time to sort this out.

The lesson here is to educate myself before you start taking anything out .