Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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Had a 0% interest on balance transfers offer come through, so transferred some money over from another card. Total was a grand. Paid £100 off after a month.
Then I paid for my car insurance on the same card last month. £350.
A week later i paid in 2 separate payments after receiving a second statement, one of £100 and one that was the same amount as the car insurance, so it was completely paid for.
Just got another statement through and they've charged me £5 interest for what I presume is the car insurance.
Is this correct? Obviously theres a balance transfer on there aswell as one purchase, but as the balance transfer money has a 0% interest offer attached to it, I presumed the money I paid in would pay off the car insurance before paying off any of the balance transfer money, meaning I paid no interest on it.
Not sure if i'm making sense here, but does that sound right? Or am I wrong and need to pay off everything now to stop accruing interest?
[Edited on 18-04-2015 by Ben G]
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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I believe yes they changed the law that any money you pay in pays off the most expensive debt first i.e. your car insurance purchase.
However they will charge interest on your balance transfer fee, if there was one?
Also, I've had it before where I paid off the card before the statement but timed it just so the statement was processing and after I had a £0 balance I still had a £5 minimum payment fee. I just paid it and used the card again. Couldnt be arsed to ring up some numpty in India for 20 minutes to try and explain.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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Balance transfer fee was a few months ago, Deano. Was about 20 quid.
This £5.18 interest just says it's a ''purchase interest'', so it can only be the car insurance.
I guess i'll have to ring them up and find out tomorrow. Just wanted to make sure what i thought about paying the purchase debt off first was correct. Unsure why it hasn't though.
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Jambo
Member
Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
User status: Offline
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Ring the card company and get them to explain
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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the credit card company will state in its t&c's what you pay for first, second and third (cash usually third)
the extra you paid to pay off insurance has probably just paid extra of balance
[Edited on 19-04-2015 by Russ]
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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Yeah that's what it looks like Russ. Will give them a call and see. If not, i'll pay it all off amd be skint for the next few days 
Good thing I get paid weekly!
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