Charmandor asked:
For example:
For example:
Current balance is $3,000 with 0% interest for another 6 months. I decide to get a cash advance for $1,000 with 24.99% interest. I make my payments of $500 a month. How do they apply that $500 a month?
These are just numbers I’m throwing out. And I understand that you should avoid using cash advances on credit cards, but I just want to know what my options are.
http://1mortgagecalculator.info
You need to look at your credit card agreement. I would be surprised if they didn’t reserve the right to pay down the lower-interest balance first. They tend to screw you every way they can.
Currently, your entire payment will be applied to your 0% balance.
The new law will change that. Anything over the minimum payment for your 0% balance must be applied to your highest interest rate balance.
The money goes toward the purchase at 0% unless you specify it is for the cash advance.