Can not pay off my 4 months 0% purchase, if I have instalments on another product

[Pawel10]

Hello everyone, very weird situation;

I have an instalment payments plan with PayPal Credit from Apple. Accidentally I have paid for a different purchase via PayPal Credit, which happened to have 0%APR. I though since it’s zero APR I will just leave it like that and pay it off over the period of 4 months in few payments. How shocked I was when my payment of £100 was allocated to the Apple Instalment Payments instead of the one off purchase! 

So it looks like I have to pay off my 24 months Instalments first before I can pay off my 4 months 0APR purchase?!

[sharpiemarker]

@Pawel10 

Go to this page and click the PayPal Credit agreement to see how payments are allocated (log in required):

https://www.paypal.com/uk/webapps/mpp/ua/legalhub-full?locale.x=en_UK

I don't know if this also applies to the UK PPC accounts but generally any payments in excess of the minimum payment may go towards the deferred interest balances in certain instances. Easy installment plans, interest, late fees get paid/credited first, if I recall correctly.

[Pawel10]

Thanks, 

That is insane, it basically means that if I would like to pay off my 4 months 0 APR purchase, I need to pay off my instalments purchase first, as every payment I will make will be allocated toward the instalments. So if the instalments are for 24 months, I will be able to pay off the 0APR purchase with a HUGE 20 months overdue fee! This is some dodgy...

[KGB723]

Each month on your billing statement Paypal lets you know what the minimum payment should be to avoid finance charges.  Pay attention to that number and you will never have to worry about paying interest.