12 month interest free instalments

[gnasher722]

I’ve made a purchase on eBay and was offered 12 monthly instalments interest free. I have other purchases which I need to pay within 4 months to avoid paying interest. Can anyone clarify if the 12 instalments will be debited from my account separately like a direct debit or do I need to make payment when making payment for the 4 month interest free items. Thanks in advance.

[PayPal_Craig]

Hi @gnasher722,

Welcome back to the Community, and thank you for your post. 

I understand this can be confusing when it's your first time paying an instalment plan. The Instalment plan will automatically be added to your minimum payment due each month. 

When you make a payment, we are regulated in the way in which we must allocate the payment. The first thing your payments are allocated to is the minimum payment. Anything over your minimum payment is then allocated to the purchases with the highest interest rate. It is not until all interest-incurring purchases are clear that your payments are allocated to interest-free purchases.

Hopefully, this provides some clarity.

Craig