Can I pay my credit card bill in parts?

As long as you pay at least the minimum amount listed on your statement, you can make part payments on your credit card. Here's how it works.

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With a credit card, you can choose to pay off part of the balance instead of repaying the total balance in one go. When you make a partial payment, it could be the minimum amount listed on your credit card statement (usually around 3% of the total owed), or any amount above that minimum.

But if you make a part payment, the remaining portion of your credit card balance will usually attract interest charges – unless you have a card that offers a promotional 0% p.a. interest rate for your balance.

What is a part payment?

A partial or part payment is any repayment that is less than the total amount you owe.

With a credit card, making part payments means you can pay off your balance over time. So, when you get your monthly credit card bill, you have 3-4 main repayment options:

  • Pay the card's closing balance in full. If you pay the total owed, you can usually avoid interest charges on your credit card thanks to interest-free days.
  • Pay the minimum amount. The minimum repayment amount listed on your credit card statement is the smallest amount you can pay while keeping your account in good standing – usually around 3% of the total owed. Only paying the minimum increases the risk of higher costs and long-term debt.
  • Pay another, partial amount of your choosing. Making a part payment is one way you can reduce your credit card balance more effectively than paying the minimum repayment.
  • Set up an instalment plan. If your credit card offers instalment repayments, you could pay all or part of your balance off in fixed monthly amounts, over a set period of time. For example, if you owed $2,000 on your card, you might set up an instalment plan and pay $200 per month for 10 months. Sometimes you can also get a promotional interest rate on the balance.

How do part payments work?

A part payment allows you to keep using your card, and helps you avoid late fees or other penalties. When interest is charged on your outstanding balance, making a part payment will also help reduce the amount of interest you're charged.

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, direct transfer or cheque.

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

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. It also means you can plan repayments around your payday – whether it is weekly, fortnightly or monthly.

3 things to keep in mind when making part payments

  1. Part payments don't stop you accruing interest on any remaining balance.
  2. You'll usually lose the benefit of interest-free days for the next billing period if you don't pay the full amount by the statement due date.
  3. If you continue carrying a balance and using your credit card for purchases, you could have a higher balance, higher minimum payment amount and more accrued interest on your next statement.

Is making a part payment a good idea?

It depends. If you make part payments to fit in with your payday, it can help you repay the card's whole balance by the due date on each statement.

If it's not possible to pay off the whole balance, making a part payment could also give you some financial breathing space, while continuing to reduce your balance over time. This can make part payments a better option than only paying the minimum amount due on your statement – as you'll see in the example below.

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

Say 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). If you only made minimum payments, it would take you around 4 years and 2 month to clear the balance and cost you around $2,357 in interest charges.

In comparison, if you made a larger, 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 years and 11 months and $1,704 in interest charges compared to only paying the minimum amount.

Keep in mind that this example doesn't take into account any other purchases or fees. But it still gives you an idea of the potential value you can get from making a part payment instead of the minimum payment on your credit card. You can use a repayment calculator to look at other scenarios, too.

How can I use part payments for multiple credit card debts?

Having debt on a few credit cards can make it more difficult to pay your whole balance off. Here are some strategies where you could use part payments to deal with multiple credit card debts.

  • Pay the balance with the highest interest rate first. With this strategy, you pay as much as you can off the card that charges the highest interest rate and make minimum payments on the other cards. Once your part payments have cleared the balance on the card with the highest rate, you can focus on paying off the next one.
  • Pay off the lowest balance first. Sometimes known as the "snowball method", this option sees you order your debts from smallest to largest amounts. You pay the minimum repayment on all debts except for the smallest, which you make part payments on until it is paid off. Once this debt is paid off, you can put part payments towards the second smallest debt, while continuing with minimum payments on your other debt. This method can help you keep track of your goals and progress, which can make it easier to stay motivated.
  • Pay off the card you want to cancel first. If you have debt on a credit card that you no longer want to use, you could focus on paying it off so you can cancel it as quickly as possible.

With any of these options, you will still need to pay at least the minimum amount that's listed on each of your credit card statements. It's likely that every credit card will have a slightly different due date, which means you could end up making repayments at different times throughout the month.

You will also be charged interest on each credit card balance until it is paid off.

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.
  • Getting a balance transfer card. Balance transfer credit cards offer an introductory low or 0% p.a. interest rate on debt that you transfer to the new account. The introductory period typically ranges from 6 to 26 months for a 0% p.a. balance transfer offer, but could be up to 30 months for a low rate balance transfer offer. This gives you a window of time when you can make part payments towards your balance with reduced or no interest charges.

Compare balance transfer credit cards

$
% p.a.
Name Product Balance transfer rate Purchase rate Annual fee Amount saved
Kogan Money Black Card - Exclusive Offer
0% p.a. for 30 months
20.99% p.a.
$0
Save with a $0 annual fee and a 0% introductory rate on balance transfers. Plus, earn $50 Kogan.com Credit and uncapped rewards points.
Citi Clear Card - Balance Transfer Offer
0% p.a. for 36 months
14.99% p.a.
$99
Offers 0% p.a. on balance transfers for 36 months with no balance transfer fee. Plus, complimentary insurance covers.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 28 months
20.74% p.a.
$0 annual fee for the first year ($129 p.a. thereafter)
Get 0% p.a. on balance transfers for 28 months (with no BT fee). Plus, $0 annual fee in the first year.
St.George Vertigo Card
0% p.a. for 32 months
0% p.a. for 6 months, reverts to 13.99% p.a.
$0 annual fee for the first year ($55 p.a. thereafter)
Get a 0% interest rate on balance transfers for 32 months (with no balance transfer fee) and a $0 annual fee for the first year.
NAB Low Rate Credit Card
0% p.a. for 32 months
12.99% p.a.
$0 annual fee for the first year ($59 p.a. thereafter)
Get a 0% interest rate on balance transfers for the first 32 months (with no BT fee). Plus, save with a $0 first-year annual fee.
Bankwest Zero Platinum Mastercard
0% p.a. for 34 months with 2% balance transfer fee
14.99% p.a.
$0
Get 0% p.a. on balance transfers for 34 months (with a 2% BT fee), ​an ongoing $0 annual fee and 0% foreign transaction fees.
ANZ Low Rate
0% p.a. for 30 months
12.49% p.a.
$0 annual fee for the first year ($58 p.a. thereafter)
Now eligible for Cashrewards Max. Save with 0% p.a. on balance transfers for 30 months (with no BT fee) and $0 first-year annual fee. Plus a 12.49% p.a. purchase interest rate.
HSBC Platinum Credit Card
0% p.a. for 36 months
19.99% p.a.
$29 annual fee for the first year ($129 p.a. thereafter)
Save money with a 0% balance transfer rate for 36 months (with no BT fee), a first-year annual fee discount and free travel insurance.
Bankwest Breeze Classic Mastercard
0% p.a. for 15 months
0% p.a. for 15 months, reverts to 9.9% p.a.
$0 annual fee for the first year ($49 p.a. thereafter)
Save with 0% p.a. on purchases and balance transfers for 15 months (with no BT fee). Plus, a $0 first-year annual fee.
Citi Rewards Card - Purchase and Balance Transfer Offer
0% p.a. for 14 months
0% p.a. for 14 months, reverts to 21.49% p.a.
$49 annual fee for the first year ($149 p.a. thereafter)
Save with 0% on purchases and balance transfers for 14 months with no balance transfer fee. Plus, $49 first-year annual fee.
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Any part payment that is higher than the minimum amount listed on your credit card statement will help you reduce the balance and subsequent interest charges. But remember that paying more off your card will help you clear the debt faster and reduce interest charges.

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