‘Promo rate ending FAR too early?’: I did a 0% balance transfer, but now facing 24.9% interest. Why is this happening?

"Hi Money Minder,"

I’m in the UK and snagged a Virgin Money credit card with a sweet 0% balance transfer deal for 28 months. It was like, yesterday. But guess what? I just got an email saying my special rate ends next month and the new rate is a shocking 24.9% for any leftover balance. I tried to reach them today, but no luck – I don’t have my info on me and their lines are already closed. I’m freaking out ’cause the balance is pretty hefty.

So, why would they do this to me?

Cheers,
Worried Brit

Response from THE MONEY MINDER:

Hello There,

I’m sorry to hear about the situation with your Virgin Money credit card. It can be alarming to receive a notification about a sudden increase in interest rates, especially with a high balance looming. The reason for this change in your promotional rate ending could be due to the terms and conditions outlined when you initially signed up for the balance transfer offer.

In situations like this, it’s essential to remain calm and take practical steps to address the issue. Since you mentioned not being able to get in touch with them immediately, it would be beneficial to gather all your credit card details and call them as soon as you can to discuss your options. They may be able to provide you with insights into why the promotional rate is ending and potentially offer alternative solutions to help you manage the upcoming changes.

In the meantime, it would be wise to review your budget and financial obligations to see if there are any adjustments you can make to allocate more funds towards paying off your credit card balance before the increased interest rate kicks in. It might also be helpful to explore other balance transfer options or consolidation strategies to reduce the overall interest you’ll end up paying.

Remember that panicking won’t solve the issue, but taking proactive steps and seeking assistance from the credit card company can help you navigate through this challenging situation. Stay focused, communicate with your creditors, and work towards finding a practical solution for your current financial predicament.

Take care and best of luck in resolving this matter,

THE MONEY MINDER.