How much do you have to pay?

You can pay off a credit card over several months or years, but you always have to repay at least the minimum amount set by your provider each month.

If you do not pay this, you will be charged 12, and the missed payment will show on your credit record.

You can find the minimum payment amount on your monthly statement. It will be at least 1% of the amount you owe plus any interest and charges.

How much can you repay?

You can choose to repay:

  • The minimum payment amount set by your provider

  • The full statement balance

  • A set amount you choose, e.g. 50

If you pay your bill in full every month, you will not pay any interest on your credit card.

However, if you want to pay off the balance over time, try to pay off as much as you can each month.

Paying back more means you will clear the balance quicker and pay less interest on your credit card.

Ways to repay

You can pay off your credit card by:

  • Setting up a direct debit

  • Using your debit card to pay by phone or online

  • Paying in person if your provider has a nearby branch

  • Sending a cheque to your credit card provider

  • Transferring money from your online banking to your credit card provider

For more details on the different options for making credit card repayments, here is how to manage your credit card.

Save money on your repayments

You may be able to cut the interest you pay by clearing your balance in the following ways:

Use your savings

The interest you pay on your credit card will be more than what you could earn on your savings.

If you owed 2,000 on a card with an APR of 17%, it would cost 340 in interest each year. If you had 2,000 in savings paying 1.25%, it would only earn 25 in interest.

Use a balance transfer

You could move what you owe to a cheaper card with a balance transfer.

Many of these deals offer a 0% interest period that can last more than two years. You can use this time to repay the balance without paying any interest at all.

Find a balance transfer card that is likely to accept you by using our credit card eligibility checker.

Pay off the most expensive card first

If you have multiple cards, pay as much as possible towards the card that is charging the highest rate of interest first.

Don't forget to continue paying the minimum payments on your other cards to avoid missed payment fees.

Pay it off with a loan

Some personal loans offer lower interest rates than credit cards, so it could be cheaper to get a loan to pay off your credit card balance.

However, a balance transfer can be a cheaper option, so compare the costs before you take out a loan.

Here is how debt consolidation loans work, and how to work out if this is the right option for you.