Ok maybe not a scam but just 'feels' wrong.

You take out a 0% balance transfer CC, then spend a bit on it. Any repayments you then make do not (on most cards) pay off any of the bit you have spent, they go towards paying off the balance transfer portion first, ensuring that you pay full interest on the 'spent' portion untill all the balance transfer is paid off. This is why they usually offer a 0% rate on new purchases for a couple of months- to ensure you will build up a debt that can be charged interest on.

Now before everyone starts, yes its in the terms and conditions signed up to, but i say cash handed over to them is cash handed over to them and they should not be allowed to apportion it here and there as they like. It should simply pay off the total outstanding balance as a whole.

My advice to others who want to change credit cards to take advantage of 0% balance transfers, is get 2 cards. Transfer the balance to one, and spend on another, paying off the balance each month of course.

Ok maybe not a scam but just 'feels' wrong.

You take out a 0% balance transfer CC, then spend a bit on it. Any repayments you then make do not (on most cards) pay off any of the bit you have spent, they go towards paying off the balance transfer portion first, ensuring that you pay full interest on the 'spent' portion untill all the balance transfer is paid off. This is why they usually offer a 0% rate on new purchases for a couple of months- to ensure you will build up a debt that can be charged interest on.

Now before everyone starts, yes its in the terms and conditions signed up to, but i say cash handed over to them is cash handed over to them and they should not be allowed to apportion it here and there as they like. It should simply pay off the total outstanding balance as a whole.

My advice to others who want to change credit cards to take advantage of 0% balance transfers, is get 2 cards. Transfer the balance to one, and spend on another, paying off the balance each month of course.


seems like you chose the wrong card, most cards have the 0% on both purchases/bal transfers for the same amount of time.

The one thing to watch for though is if you take cash out an atm with a credit card its charged interest straight away and the cash % is usually much higher than the purchases, also they pay any payment to the lower interest rate first.

why dont u not spend anything onthe transdfered card

Why would any bank want to give you something for nothing?

If you have a credit card with a balance that you want to transfer, it often shows that you spend more than you repay every month.
That means that you pay interest charges.

The offering bank want you to pay your money to them!

There ARE ways to save money by being a 'card whore' but you have to be very disciplined.

......................

or you cud just not use a credit card and stop living beyond your means

There's choice so I don't think you can get away with calling it unfair.

It might be a bit sneaky, but as you point out - just get 2 cards, or one that offers 0% on both BT and spend.

You clearly know the T&Cs, but for all those people who're not financially savy, then they're an accident waiting to happen. And that's no good. They offer a service, but I truly believe that there are people out there that just get v.confused by it all and don't really understand what they're taking on. I used to think that because there are T&Cs that there's no excuse if you get stung, but not everyone is that clued up and - greed aside - we should be watching out for the more vulnerable. It's good to see the FSA taking action now (charges brought down - payment protection insurance under scrutiny etc) - hopefully in a few years people will be better informed.

When we balance transfer, we set up a standing order to pay x amount that we know in x months will pay the balance - or at least go some way, knowing we'll then pay interest and accept it.

You know the score - accept it, or don't buy now...cos you WILL pay later!

Happy spending!!

Most cards will accept payments made towards the balance you've just spent if you make two seperate payments and specify that the second is towards the non interest free part of your balance.