Credit card cash interest advice please
jonjon123
Posts: 57 Forumite
in Credit cards
Hi all, hope you are well.
I just wanted to ask some advice please, as recently taken out a credit card with 12 months 0% interest in purchases and 19.9% interest in cash withdrawals......
I know I shouldn't do it, but ive taken out approximately £1000 in cash over a 3 month period, so was thinking when I got paid, to pay off say £1000 of the balance.
What i need to ask is, if i do this will this flush out all of my cash interest in one go?
Ive been informed that because i have 0% in purchases then any money i pay towards my balance will always go on the highest rate of APR first (i.e cash withdrawals) so firstly is this true?
I was thinking of paying off a huge balance with my wages and then surviving that month using my credit card and that way i would get rid of all of my cash interest and not pick up any interest.
Can i ask does this work and is this the right way to do it?
Never done it this way before, so kind of doubting myself for some reason, so just wanted some advice really. Thank you.
I just wanted to ask some advice please, as recently taken out a credit card with 12 months 0% interest in purchases and 19.9% interest in cash withdrawals......
I know I shouldn't do it, but ive taken out approximately £1000 in cash over a 3 month period, so was thinking when I got paid, to pay off say £1000 of the balance.
What i need to ask is, if i do this will this flush out all of my cash interest in one go?
Ive been informed that because i have 0% in purchases then any money i pay towards my balance will always go on the highest rate of APR first (i.e cash withdrawals) so firstly is this true?
I was thinking of paying off a huge balance with my wages and then surviving that month using my credit card and that way i would get rid of all of my cash interest and not pick up any interest.
Can i ask does this work and is this the right way to do it?
Never done it this way before, so kind of doubting myself for some reason, so just wanted some advice really. Thank you.
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Comments
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It will pay off the highest rate statemented balance.0
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How not to use a 0% purchases card.0
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Very helpful, thanks.
Think i already stated that didnt i?0 -
PeacefulWaters wrote: »How not to use a 0% purchases card.
How not to use any credit card...0 -
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Hi all, hope you are well.
I just wanted to ask some advice please, as recently taken out a credit card with 12 months 0% interest in purchases and 19.9% interest in cash withdrawals......
I know I shouldn't do it, but ive taken out approximately £1000 in cash over a 3 month period, so was thinking when I got paid, to pay off say £1000 of the balance.
What i need to ask is, if i do this will this flush out all of my cash interest in one go?
You need to pay off the £1000 you withdrew plus all the interest that has accrued, and then next month there will be a little bit more trailing interest that will also need paying off. Then you need to not do this again!I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
You need to pay off the £1000 you withdrew plus all the interest that has accrued, and then next month there will be a little bit more trailing interest that will also need paying off. Then you need to not do this again!
Ok, so basically pay off all the cash i have withdrawn and then I have to do it again next month? Correct?
Will that then flush out literally EVERYTHING I have built up? Regardless of whether I did it all in same month or previous months?0
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