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STAYING ON TOP OF YOUR CREDIT CARD BILL
How to pay off your Credit Card and better manage your finances
What you’ll find:
- Tools and strategiesfor paying your Credit Card off
- Managing minimum Credit Card payments
- Setting up a monthly Credit Card payment plan
- Dealing with long-term Credit Card debt
How to pay off your Credit Card in full every month may seem like a no-brainer. Payment date set. Interest and late fees averted. Job done. But it’s not always that simple with unforeseen expenses or a sudden loss or drop in income coming out of the blue.
If the unexpected happens, there are simple things you can do manage your Credit Card debt. This page will help you answer the question ‘how do you pay off a Credit Card?’ and also provide ways to help you keep your Credit Card debts down.
Understanding how to pay off Credit Cards
When your statement arrives, you’ll have a choice of ways to pay your Credit Card off. You can pay off the entire closing balance on, or before, the statement due date, to avoid paying interest. Or you can pay your closing balance over time by paying at least the minimum monthly payment amount which means you will be paying interest during this period.
YOU MIGHT CONSIDER CUTTING ONE OF YOUR MANY ONLINE STREAMING SUBSCRIPTIONS, OR JUST DINING OUT LESS OFTEN FOR A WHILE
Paying Credit Cards off with minimum repayments
This is the minimum amount you have to pay by the payment due date. For American Express® Credit Cards, this is set at 2.5% of your closing balance or $30, whichever is greater. However, if you only pay off the minimum monthly payment, you’ll pay more interest and take longer to pay off your Credit Card debt.
Can I set up an automatic paymentplan to pay my Credit Card off?
Automatic payment plans can help make sure you pay off your Credit Card on time. By setting up a direct debit to automatically pay a certain amount of your Credit Card debt every month, you’ll have the peace of mind knowing you’ve made your payment and you don’t even have to think about paying your Credit Card bill. You can also opt-in for SMS or email alerts reminding you a payment is due.
Get the flexibility and control of paying with Plan ItTM
Plan It® is designed to give you the flexibility to pay off your Credit Card debt in equal monthly instalments. You can realise a dream and try new experiences, then pay off your recent transactions or balance in equal monthly instalments with 0% p.a. interest. A monthly plan fee applies1
How to pay off Credit Cards in other ways
American Express provides a range of options for you to pay your Credit Card debt so you’re never left wondering how you are going to pay off your Credit Card. Choose from the following six ways to pay off your Credit Card:
Pay Bill Online
This fast, simple payment method allows you to register your bank details via American Express Online Services, then pay your American Express bill anytime from your Online Account.
Paying with the Amex App
Download the Amex App, and once you have setup Pay Bill Online you can select “Make payment” on the Home & (and) Statements tab(s) within the Amex App. Simply choose the date and amount to make payments on your Account wherever you are.
Paying via Direct Debit
A Direct Debit lets you pay bills automatically, so you don't have to worry about missing due dates. Simply provide your bank account details to American Express and tell us the amount you’d like to pay each month.
Find out more information about paying via Direct Debit here.
Paying via PayID
You can pay your Credit Card debt faster directly from your bank account using your unique American Express Card PayID.
Before paying for the first time, you must activate your Amex CardCard PayID here or by logging into your Online Account, selecting the ‘Payments’ tab and clicking on ‘View or Activate your PayID’.
Paying via BPAY®
You can pay your Credit Card bill directly from your bank account using BPAY®.
- For all CardCards (excluding David Jones CardCards): Biller Code: 5082
- For David Jones Credit Cards: Biller Code: 88013
- Customer Reference Number: Your 15-digit CardCard number
It’s important to know that BPAY® payments can take up to three business days to process, so you should make the payment at least three business days before your statement due date.
The daily BPAY® transaction limit for American Express payments is $1,000,000. However, banks may have a lower default payment threshold. To request a higher transaction limit, please contact your remitting bank.
How do you pay off a Credit Card in person?
You can make payments in person at any Australia Post Office using your EFTPOS Card or cheque. Remember to take your Card and your current posted Card Account statement with you. Payments are limited to no greater than your current Card Account closing balance and you will be charged a $3 handling fee. It can take up to three days to process your payment. If you’re enrolled in Online statements, then you won’t be able to pay in person.
Cash payments are no longer accepted.
Staying on top of your Credit Card debt and help on how to pay off a Credit Card
Work out your budget and spend smarter
Paying your Credit Cards off each month and keeping your Credit Card debt under control can sometimes take some planning. You can begin by conducting a serious review of your monthly spend. Take time to list all your expenses into a spreadsheet if possible.
Include fixed expenses, like rent or mortgage, groceries, utility and phone bills, council rates, medical and insurances, public transport and auto, schooling and sports. Then add the rest of the outgoings, like personal loans and yes, your Credit Card. And finally, unexpected expenses like car repairs, medical bills, extra school costs and the like.
Then add your total monthly income into the spreadsheet and see whether you are living within or beyond your monthly income capacity. Are you saving or overspending?
Doing this gives you a clearer picture and greater understanding of your financial situation. It also allows you to see where you can shave off a few expenses here and there – and think twice about some of your more non-essential spending.
Ultimately, you can start creating a budget to follow and help prevent overspending. It will even help to prepare you for larger expenses, and most importantly tackling your Credit Card debt.
Use budgeting apps to help save money and pay off your Credit Card debt
Managing your personal finance may seem like a daunting task, but commitment and diligence are necessary elements of a functional financial budget.
Thankfully, special expense tracker tools and budget apps are available to help you monitor your expenses simply by using your smartphone.
With increased clarity on your financials, you may find it easier to achieve increasingly larger goals – from paying off Credit Card debts to travelling as well as putting savings into your superannuation, or even your own home.
Pay on time to avoid Late Payment Fees
A Late Payment Fee is a fee incurred if you do not pay the minimum payment by the payment due date as indicated on your statement. Not paying your Credit Card repayments on time could also affect your credit score.
What is a Credit Card limit?
A Credit Card limit is set when you’re approved for a Credit Card and is the maximum amount of credit you can use on your Card. All Credit Cards have a maximum and a minimum credit limit.
You can request to change your credit limit at any time. Simply apply for an increase through Online Services, or by calling the number on the back of your Card. We will request information from you so that we can assess whether the limit you requested is suitable for you. If we approve your application, your new limit will be available within one hour.
Making a start to pay off long term credit card debt
Ever wish you had a “cheat sheet” to the most constructive ways of how to pay off Credit Cards?
It may take some work, dedication, and discipline, but virtually anyone can conquer their Credit Card debt.
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Following a few simple tips can help you keep on top of your credit card, make it work harder for you and ultimately better manage your finances.
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Calculate your budget. Check your monthly income vs expenses to give you a clearer picture of your finances.
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Keep track of your spending. It helps to see where your can save, set limits and avoid overspending.
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Pay more than the minimum. You save in interest and pay off the total earlier.
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Calculate your monthly repayments, pay sooner if you can. A credit card repayment calculator helps with the period and amount.
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Set up a monthly payment plan to help pay off your credit card sooner.
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Plan It™ with American Express helps you to pay off your balance in equal monthly instalments at 0% interest.
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There are numerious ways to help pay off your credit card, some simpler and easier than others.
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Find your reason ‘Why’
Being and staying motivated may be one of the most important steps to becoming free of Credit Card debt. To sustain you through what might be a lengthy process, you'll likely need some motivational goals. Some examples include:
- Picture yourself free of Credit Card debt and being financially responsible – shift your mindset and develop a new sense of what you can achieve.
- Imagine using your income to achieve your financial dreams or something more exciting than paying off Credit Card debt.
- Set a goal to save for a car, a house, or a dream holiday for your kids.
- Consider how becoming debt-free will improve your credit score.
Make a serious start
The next step for many people is a commitment to paying their Credit Card off and stop adding to their debt. You could even put your Credit Cards away for a time and use cash or debit Cards. It’s also important to develop a monthly budget that helps you rein in spending so that you can boost your monthly "pay-down" number which is the dollar amount available to reduce your Credit Card debt.
For debt on one Card: consider a balance transfer Credit Card
How do you pay off a Credit Card can often be answered with a Credit Card balance transfer. It’s a great tool for people looking to pay off Credit Card debt that is all or mostly on one Card. Some Credit Card products offer reduced interest for introductory periods. However, most charge transfer fees of a certain percentage on the amount you transfer and tend to have high variable interest rates once the introductory period ends.
Note that balance transfers are not currently available on new American Express Credit Card applications.
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- Plan It™ Terms and Conditions
You can create an Instalment Plan as long as your Account is in good standing. We may limit the amount that can be transferred to an 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 will be charged a Monthly Plan Fee for each Instalment Plan created. This fee will be charged each month your Instalment Plan is active and will be notified to you before you create the Instalment Plan. View the full Plan It™ Instalment Terms and Conditions here.