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applying payments with variable interest rates

Established Contributor

applying payments with variable interest rates

With the changes in the law in 2009 can someone confirm if I have this correct please. For example say I have the following balance on a credit card:

 

$100 at 0%

$100 at 10% interest

minimum interest is $2/mnth

minimum payment $25

 

I pay $100 that month. The first $2 goes to pay the interest, the rest of the $23 of the minimum payment can go wherever the CCC wants to apply it (obv they would choose the 0% APR). The other $75 must go to the 10% interest balance as per the CCA2009 . 

 

So the new balnace would be

$77 @ 0%

$25 @ 10%

 

 

 

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1 REPLY
Senior Contributor

Re: applying payments with variable interest rates


compassion101 wrote:

With the changes in the law in 2009 can someone confirm if I have this correct please. For example say I have the following balance on a credit card:

 

$100 at 0%

$100 at 10% interest

minimum interest is $2/mnth

minimum payment $25

 

I pay $100 that month. The first $2 goes to pay the interest, the rest of the $23 of the minimum payment can go wherever the CCC wants to apply it (obv they would choose the 0% APR). The other $75 must go to the 10% interest balance as per the CCA2009 . 

 

So the new balnace would be

$77 @ 0%

$25 @ 10%

 

 

 


It depends:

 

If the 0% is a defferred interest deal, then it all has to go to the 10%, unless you are within 60 days of experiration then it all goes to deffered interest.

 

Not sure if it does not expire.

Message 2 of 2