Credit card interest confusion?

[R1 Indy]

Basically i have 2 credit cards, both with around 2K on each.

Now my main bank has just given me an offer of 0% P.A on balance transfers for 6 months (2.9% balance transfer).

Now this sounds good as i could transfer the balance from the other card to my main one and save a load of interest(both are currently 22% APR)

But a little confused at how this would work,

Obviously to transfer 2k i would be charged 58, but would then save a ton of interest for 6 months.

But how would it then work when i make payments to the credit card, For example:

If i was to then make a payment of 500 off the 4K balance, would this pay off what was currently on the card(and paying interest on), or would it pay off what id just transferred(not paying interest on).

Hopefully you can understand what I'm waffling on about here.

But trying to work out if its worth it or not, but not really sure how it all works, so any advice would be greatly appreciated.

Cheers

[hyperblue]

The rules around this changed last year, so that you pay off the amounts with the highest interest first (it used to be up to the card issuer!).

In your case, payments would go towards the amount already on the card first, then the 0% amount.

Edited by hyperblue on Thursday 15th March 16:13

[R1 Indy]

Excellent well worth doing then.

cheers