different interest rates for cash, purchases and balance transfers

Sassamac

I just looked at the paperwork for hubbys credit card again yesterday and theres three different interest rates - a high one for cash, a bit less for purchases, a bit less for balance transfers.
The statement states the amount of interest each one accrues each month, but not the outstanding amount.
So I have no idea how much of the balance is cash, purchases and BT's. We have shuffled things around a bit and also shuffled our debts between us.
Can anyone tell me how they're paid off or does it vary from card to card.
The synical side of me thinks that the cash amount (with the highest interest rate) wont be touched until the other segments of the debt are cleared first.
So it was probably only £20 cash but it will just sit there accrueing interest (75p per month) until the remaining 2k is paid off (in addition to the 2.5% fee it would have attracted when he took it out).
DH thinks this isnt the case and its all paid off proportionately.
Is there any way of finding out how much of the repayments goes to which element of the debt?
Would transfering ALL the debt to another card and then transferring it back alleviate this problem (i.e. it would then all be classed as a BT and be the cheaper rate). The card it is on at the mo have just offered us a 3.9% for 6 months deal on all new BT's. The downside to this is we would have to pay the 2.5% BT fee twice.

gazza975526570

Sassamac wrote: »

I just looked at the paperwork for hubbys credit card again yesterday and theres three different interest rates - a high one for cash, a bit less for purchases, a bit less for balance transfers.
The statement states the amount of interest each one accrues each month, but not the outstanding amount.
So I have no idea how much of the balance is cash, purchases and BT's. We have shuffled things around a bit and also shuffled our debts between us.
Can anyone tell me how they're paid off or does it vary from card to card.
The synical side of me thinks that the cash amount (with the highest interest rate) wont be touched until the other segments of the debt are cleared first.
So it was probably only £20 cash but it will just sit there accrueing interest (75p per month) until the remaining 2k is paid off (in addition to the 2.5% fee it would have attracted when he took it out).
DH thinks this isnt the case and its all paid off proportionately.
Is there any way of finding out how much of the repayments goes to which element of the debt?
Would transfering ALL the debt to another card and then transferring it back alleviate this problem (i.e. it would then all be classed as a BT and be the cheaper rate). The card it is on at the mo have just offered us a 3.9% for 6 months deal on all new BT's. The downside to this is we would have to pay the 2.5% BT fee twice.

The cynic in you is generally right and you will pay off the "cheaper" debt firstly leaving any cash advances as your last one (double check with your provider though)

Yes you could balance transfer it to another card - 0%. Some charge a fee others dont.

Why would you then want to transfer it back to your existing provider though?

neverdespairgirl

Teh vast majority of cards will take payments off the lowest rate of interest first, so BT, then purchases, then cash.

Sassamac

thanks both of you, sounds like Im right then unfortunately.

Gazza, I dont have a 0% deal anywhere at the mo and am reluctant to apply for any new credit as our credit rating isnt great. The only card I have is a 21.9% credit card which charges a 2.5% transfer fee.

Will have to crunch some nubers and see if its worth doing.