Paying in instalments:
a flexible way to manage larger purchases
Some expenses are easy to plan for. Others arrive all at once: a flight deal that’s too good to miss, a laptop that suddenly stops working or a car repair you didn’t see coming.
When larger costs don’t neatly fit into your monthly budget, paying in instalments can be one way people choose to spread the impact over time. But how do instalment options work, and when might they make sense?
|
What does it mean to pay in instalments?
Paying in instalments simply means dividing the cost of a purchase into smaller payments over time, rather than paying the full amount upfront. This can be described like:
Depending on the provider, these options can differ in how fees are structured, how long you have to repay and how payments are managed so it’s important to read the Terms and Conditions of each option.
Some instalment features are built into existing financial products, while others are offered through third-party services, usually at checkout during your purchase. |
What does it mean to pay in instalments?
Paying in instalments simply means dividing the cost of a purchase into smaller payments over time, rather than paying the full amount upfront. This can be described like:
Depending on the provider, these options can differ in how fees are structured, how long you have to repay and how payments are managed so it’s important to read the Terms and Conditions of each option.
Some instalment features are built into existing financial products, while others are offered through third-party services, usually at checkout during your purchase. |
Why people choose to spread payments over time
There’s no single reason people use instalments, it often comes down to how they prefer to manage their cash flow and their financial circumstances.
Making large purchases more manageable
There are times when you’ll need to make a purchase outside of your typical spending. Maybe your current laptop has seen better days, or you need something more reliable for work or study. Or perhaps your washing machine has broken down and needs replacing quickly.
Larger purchases like these can feel like a big shift from your usual monthly spending. Spreading the cost over several months can make it easier to act, while keeping your budget in a good position.
Taking advantage of time-sensitive opportunities
You might find a great deal on flights for a holiday you’ve been wanting to book, but covering flights, accommodation and a few extras in one go quickly adds up.
By spreading the cost, you can confirm your plans and secure your bookings without having to wait, giving you some flexibility to organise everything upfront while managing your budget over time.
Managing unexpected expenses
Some months include higher than usual costs with unexpected expenses like essential home or car repairs. If you need your car for work, repairs are not something you can easily put off.
In situations like this, instalments can provide more payment predictability. Instead of one large payment, you know exactly what to expect each month while you focus on getting back on the road.
Not all expenses are predictable, but creating plans to help manage finances can provide flexibility and help you stay on top of your Credit Card bill.
Different types of instalment options
Not all instalment solutions work the same way, so it’s worth understanding the differences.
Buy now, pay later services
These are often offered at checkouts when shopping online or in-store. Payments are typically split into smaller amounts over a short period.
Depending on the provider, there may be fees for late payments or missed instalments.
Credit Card instalment features
Some Credit Cards offer built-in features that allow eligible purchases to be moved into instalment plans after you’ve made them.
For example, American Express® Credit Cards have a built-in feature called Plan It™, which allows Card Members to pay off eligible transactions or a portion of their balance in equal monthly payments1. (Please note that instead of interest, a fixed monthly fee applies on balances moved into an instalment plan).
Learn more about how Plan It™ works.
Retail or provider payment plans
Some retailers and service providers offer their own payment plans for larger purchases, such as dental expenses, electronics or travel packages. Each option comes with its own terms, so it’s important to review the details carefully.
What to consider before choosing to pay in instalments
While paying over time can offer flexibility, it’s still important to think about how it fits into your overall finances.
The total cost over time
Some instalment options include fees or charges. Even when payments are spread out, the total amount paid may differ from the original purchase price.
Reviewing the full cost upfront can help you make a more informed decision.
Your monthly commitments
Adding instalments means committing to future payments. It can be helpful to consider how these will fit alongside your regular expenses.
Payment structure and flexibility
Different options have different rules including how payments are scheduled, what happens if you miss one and whether you can repay early. Understanding these details can help avoid surprises later.
Types of expenses
Opting to pay in instalments may not always be the right fit for expenses like everyday spending or smaller purchases that can be paid off immediately.
A balanced approach to using instalments
For many people, instalments work best as a tool they use selectively rather than routinely.
Used thoughtfully, they can help manage larger or irregular expenses without disrupting their broader budget.
Keeping track of your commitments and understanding the Terms & Conditions of each plan can help you stay in control.
If you’re exploring ways to spread the cost of a purchase, you can compare different options and choose what aligns best with your financial situation, whether that’s paying upfront, using savings, or setting up an instalment plan.
What is Amex Plan It™?
How does Plan It™ work?
Plan It™ Instalments is a payment flexibility feature available with Amex Credit Cards that helps spread larger costs into 3, 6 or 12 equal monthly payments1. There’s no interest, however a fixed monthly fee applies for as long as your plan is active.
The plan allows you to split purchases of $100 or more, or a portion of your Card balance, into fixed monthly instalments that are automatically added to your minimum payment due each month. You can create multiple instalment plans, and the amount of plans you can have at once depends on your Card, balance, and credit limit.
See how Plan It works with our Plan It™ Instalments calculator.
How to set up Plan It™ instalments
- You can set up a plan in just a few taps or clicks by following the steps using the American Express App® or your online Account.
- The monthly instalment amount will be automatically added to your minimum payment due each month, including the monthly fee.
- Before confirming your plan, you’ll be able to review all the key details. This includes your monthly payment amount, the length of your plan, and the total cost over time. Taking a moment to check these details can help you decide whether the plan works for your budget.
- If you change your mind or make a mistake, you can cancel your instalment plan at any time with no cancellation fee, and any remaining plan balance will go back into your standard balance.
Explore American Express Cards to find the one that’s right for you and visit our FAQs page to learn more about Plan It™ instalments.
FAQs
Paying in instalments may affect your credit score, depending on the type of provider and how the repayments are managed.
If the instalment plan is linked to a credit product, such as a Credit Card, your payment behaviour, including making payments on time and how much of your credit limit you use, may be reflected in your credit history.
Missing payments or falling behind could have a negative impact, while consistently making payments on time may help demonstrate responsible credit use.
Not all ‘buy now, pay later’ services report to credit bureaus, but this can vary by provider, so it’s worth checking how your chosen option works.
Paying in instalments is a broad concept that means spreading the cost of a purchase over time. ‘Buy now, pay later’ is one type of instalment option, usually offered at checkouts and often with shorter repayment periods.
Other instalment options may be available through financial products, such as Credit Cards or directly from retailers. Each option can differ in terms of fees, repayment structure and flexibility.
Instalment payments can be helpful when managing larger or unexpected expenses, especially if paying the full amount upfront would put pressure on your budget.
However, it’s important to consider the total cost, any fees involved and whether the repayments fit comfortably within your monthly expenses.
Before setting up an instalment plan, it can help to think about:
- the total cost over time
- your ability to meet the monthly payments
- how long you’ll be making repayments
- how it fits with your other financial commitments
Taking a moment to review these factors can help you choose an option that suits your needs.
Some instalment plans may include interest, while others use a fixed fee structure instead. This depends on the provider and the type of plan.
Before choosing an option, it’s a good idea to review the total amount you’ll repay over time so you understand the full cost.
In some cases, you may be able to repay your instalment plan early, but this depends on the provider’s Terms and Conditions.
Checking whether there are any fees, restrictions, or changes to the total cost can help you decide what works best for your situation.
If your instalment plan is linked to a Credit Card, the payments may be included as part of your overall balance and minimum payment due each month.
How this appears can vary depending on the provider, so it’s helpful to review your statement and understand how instalments are reflected.
Choose the Card that best suits you
Travel
Premium
Qantas Frequent Flyer
Velocity Frequent Flyer
Rewards
Browse Our Eligible Plan It Cards
To take advantage of the Plan It feature, you’ll need to have an American Express Credit Card. American Express offers a variety of Cards that provide the flexibility and benefits you need to make the most out of Plan It. Whether you're focused on travel rewards or other benefits, there's a Card for you. Visit our website to explore our range of eligible Plan It Cards and find the perfect fit for your financial needs.
With both the Amount-based and Purchase-based features, Plan It enables you to take control of your monthly repayments and stay on top of your budget with ease. As an American Express Credit Card Member, you can keep earning valuable rewards while enjoying the flexibility and convenience of Plan It. So why not take advantage of this innovative payment feature today!
Check out some of our most frequently asked questions (FAQs) about Plan It here.
American Express Consumer Credit Cards are offered, issued, and administered by American Express Australia Limited ABN 92 108 952 085, Australian Credit Licence No. 291313.
1. Plan It™.
You can create an Instalment Plan as long as your account is in good standing. We may withdraw this offer, prevent you from creating any new Instalment Plans or cancel any of your existing Instalment Plan(s) at any time if your Card Account is overdue, or if you do not comply with your Card Conditions.
The minimum Plan amount is AUD$100. We may also limit the amount that can be transferred to an Instalment Plan.
You will be charged a Monthly Plan Fee for each Instalment Plan created (unless a promotional plan is available). This fee will be charged each month your Instalment Plan is active and will be disclosed to you at the time of creating your Instalment Plan.
Each Instalment Plan will begin from the date it is successfully created, as communicated to you in your Online Account.
Payment of your first Monthly Instalment will be due in your next payment cycle.
You may request to cancel your Instalment Plan(s) at any time through your Online Account or the Amex App. Any billed Monthly Plan Fees will remain payable, but no further Monthly Plan Fees will be billed after cancellation is effective. As cancellation can take 24-48 hours to process (“Processing Time”), you may be charged a further monthly plan fee after requesting cancellation if the Processing Time occurs on your payment date.
View the full Plan It® Instalment Terms and Conditions here.
MORE FINANCIAL WELLBEING ARTICLES
Find the Right Credit Card for You
Build Emergency Fund
EXPLORE MORE POSSIBILITIES
CHECK OUT OUR TRAVEL CONTENT
From getting out of town for the day to getting away from it all for a well-earned break, see what great things you can do on your travels.
CHECK OUT OUR LIFESTYLE CONTENT
From the tastiest places to dine out to activities that keeping the kids active and happy over the holidays, discover what great things you can do day in, day out.
CHECK OUT OUR LIFE MOMENTS CONTENT
From helping you get prepared to bring a new puppy home to guiding you through buying your first home, find out what great things you can do for the moments that matter most.