You can make part payments on your credit card bill

As long as you pay the minimum amount listed on your credit card statement, part payments are fine. But you will get charged interest.

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Richard Whitten

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Amy Bradney-George

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Key takeaways

  • With a credit card, you can choose to pay off part of the balance on your monthly statement instead of repaying the whole thing.
  • But if you don't pay off the closing balance in full by the due date on your statement, you'll get charged interest.
  • Paying your credit card in parts can help you manage your balance. But the longer it takes, the more interest you pay.

What is a part payment?

When you get your monthly credit card statement it shows:

  • How much you owe. That's the closing balance, which you can repay in full.
  • The due date. That's the date you need to pay off the balance before you get charged interest.
  • The minimum payment amount. That's the minimum you need to repay. You can make a part payment that is bigger than the minimum amount.

A part payment is more than the minimum payment but less than the full closing balance.

Finder survey: How stressed are Australians of different ages about their credit card debt?

ResponseGen ZGen YGen XBaby Boomers
Somewhat stressed39.33%26.9%26.32%9.66%
I don't have credit card debt34.83%25.27%27.3%37.5%
Not at all stressed23.6%38.32%39.14%51.7%
Extremely stressed2.25%9.51%7.24%1.14%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

How do I pay off part of my credit card balance?

To make a part payment on your account, choose the amount you want to pay off your card and then use one of the repayment methods listed on your credit card statement. For example, BPAY or direct transfer from a bank account.

You can make a part payment once, before the due date listed on your statement, or make several part payments throughout the month.

Can I pay off my credit card bill with another credit card?

The short answer is no: you can't use one credit card to pay for another. But this depends on the card and the payment method. You might be able to use BPAY to pay your credit card bill using another card.

But most card companies consider this a cash advance. Which means you'll get charged a really high interest rate right away. It's a really bad idea.

There is another option: a balance transfer. This involves taking out a new credit card, applying for a balance transfer, and then paying off the outstanding credit card balance with the new card.

Balance transfer offers give you a period of 0% or low interest to help you repay the balance on the new card.

Is paying my credit card bill in part a good idea?

Making part payments can be useful if you can't afford to pay off your entire balance at once.

You will get charged interest. And the longer you take to pay off a credit card balance, the more the interest charges cost you.

But making part payments is still better than just paying the minimum amount due on your statement. As credit card interest is charged daily, making more frequent payments will help you reduce your balance and interest charges for the next billing period.

Example: How a part payment could help you pay off your credit card

  • You have a $5,000 balance on a credit card with a 19.99% p.a. interest rate and a minimum payment amount of $150 or 3% of the balance (whichever is greater). You can't afford to pay it all off in one go.
  • If you only made minimum payments, it would take you around 4 years and 2 months to clear the balance. You'd also pay around $2,357 in interest charges.
  • But if you made a bigger part payment of $400 per month, it would take you about 2 years and 3 months to pay off the balance and cost you around $653 in interest. This would save you around 1 year and 11 months and $1,704 in interest charges.

You can use a repayment calculator to see how different part payments affect your overall costs.

How can I save on interest charges while making part payments?

There are a few tips and strategies you can use if you want to keep credit card interest to a minimum while you pay off the balance. These include:

  • Paying as much as you can off the balance. Even if you can't pay the full balance on your credit card, paying the highest amount that's affordable for you will help you reduce the debt and save on interest as a result. You can use a credit card repayment calculator to see how much different part payments will help you save.
  • Consolidating your accounts. If you have more than one credit card, consolidating them into one account could help you save on both fees and interest charges. You can learn more about debt consolidation options in this guide.
  • Setting up an instalment plan. Some credit cards may offer a promotional low or 0% interest rate if you set up an instalment plan for your balance. You can see if this option is available by logging in to your credit card account or by calling the number on your card or account statement.
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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

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Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio

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