Allocating payments to promotional offers instead of paying in full or increasing monthly payments
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Hello, I have a 4 month promotional period for dreams on my account ending on the 2nd of February. Totalling £423.20. I'd like to pay this specific amount off in full before the 2nd of February. However when I go to pay it doesn't give me the option pay off promotional balances instead only by increasing my total direct debit or paying in full. I just want to settle that balance so I don't accrue interest on it. I have 3 other promotional balances that I don't intend to pay until they are due as well as roughly £300 credit in the standard balance (total credit less promotional offers).
So if I am reading the forums correctly, with promotional balances that are 2 months within due of paying paypal will allocate anything over the minimum payment limit to the soonest ending promotional offer. So if I was to pay the minimum payment £33.61 + £423.20 remaining balance on the dreams promotional offer - £456.81 this would pay off the promotional balance in full before I accrue interest on the 2nd of February? At least this is the system in the US. Does the same apply to the UK?
Or does it apply to the standard balance first? Since I would want to pay the promotional balance before the standard balance to not accrue 4 months of backdated interest.
Thanks in advance.
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I have the same problem.
I bought my son a bike, the store was offering 12 months interest free through paypal credit. Fine, we took it.
I also bought something else on 12 months interest free for £899.
I have a DD set up for minimum and obviously the 12 instalments are set up anyway.
I had a separate purchase which was on the standard 4 months interest free for £400. I logged in yesterday and there is £91.58 remaining to be paid before Feb 4th. No problem, paid £91.58 yesterday. Logged in today and it seems to have simply take it off my other items.
You should be able to click on what purchases you wish to pay off, this is obviously designed to get you to accrue interest. I will speak to them tomorrow.
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OK, just spoke to someone.
Any payments made will always go towards Instalments first, so if you have made a purchase with a company offering 12 months interest free, it will pay that first.
After the 4 months interest free period expires she said you get between 21-25 days to pay off the full amount as it will move to an outstanding payment with interest applied.
My interest free period ends Feb 1st, of the £399 there is £91.58 remaining. I will report back if I can pay that off with out accruing any interest charges.
I think this is a terrible way to do things in all honesty, and will stop me using PP Credit for either 12 months interest free offers or for their own 4 month service. The two should not be linked.
With so many stores now using paypal credit for their finance I think a lot of people will get their fingers burnt with this.
12, 18, 24 month interest free offers need to be kept alone with an option to pay it down you wish.
All other payments should, imho, be paid off purchases which are closest to ending the interest free period first automatically.
How it works now is....
Buy something on 24 months interest free for £1200.
Then after a couple of months buy something else for £1000 on paypals default 4 months period with the intention of paying £250 a month.
You pay three lots of £250 thinking you are paying the £1000 down, but it actually reduces the 24 month plan down to £1250 (less the 2 instalments of £50 you have paid, so £1150. Meaning you still owe £1000 and interest will be applied.
So the best thing to do is leave that in your paypal account and on the day it moves to interest, then pay off the £1000.
I hope she is right, and you do get 21-25 days to pay it off, if not I will be closing the account.
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