Not all debt on a 0% Balance Transfer Credit Card is treated the same way. For example -

• If you transfer £2,000 to the 0% Card that is one debt
• If you then use the card again spending £1,000 that is a separate debt

The trouble is the £1,000 is not charged at 0% as it's not a balance transfer. Usually this will be charged interest at the standard rate, 15% or more.

But the £1,000 debt cannot be repaid until the balance transfer debt of £2,000 has been repaid and therefore the £1,000 starts to accrue interest.

This is one of the small print tricks designed to catch out the many people who balance transfer. So Golden Rule 1 states -

The other Golden Rule is never to miss a minimum monthly payment.

Balance Transfer Cards still require a minimum payment every month, usually 2% - 3% of the overall balance. And miss this and the small print will say the 0% deal is off and interest will be charged at the standard rate

The way to combat this threat is one of the following -

• The difference between a Balance Transfer Card and a 0% Purchase one
• How to get a time extension on a Balance Transfer Card
• Why Life of Balance Cards are a great way to borrow money