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 -
If you balance transfer never spend on that card again until the balance is settled in full