Credit Card Statement Installment Plans - Worth It?

obses2ion on 18/03/2021 - 17:52
Last edited 19/03/2021 - 11:15

Been looking for info/reviews about this on the internet and haven't had much luck.

Qantas offers a 'Statement Installment Plan' on their credit cards. Brief info as follows:

What are the benefits of setting up a Statement Instalment Plan?
Take control of your Qantas Premier credit card repayments by converting the purchases on your statement into monthly instalments over a set term. Balance Transfers and other balances on a promotional rate, card fees, interest charges, cash advances and existing instalment plans are not eligible for conversion. Statement plans can be set up for up to 60 months, from what I've read.

Has anyone utilised a Statement Installment Plan to make set monthly repayments? Is it worth it, or am I better off making the minimum monthly repayment on my credit card?

Thanks.

ETA: Would appreciate insight relating to statement installment plans, or similar. Unable to "pay off my balance in full each month", otherwise I wouldn't be asking here. :-)

Financial

Comments

  • Colin2905 on 18/03/2021 - 19:14
    +3

    or am I better off making the minimum monthly repayment on my credit card?

    No, you're far better off paying the full closing balance each month.

    • obses2ion on 19/03/2021 - 11:09

      Thanks for the insight, would if I could. Unfortunately I'm not in a position to do so at the moment.

      • Colin2905 on 20/03/2021 - 07:41

        Sounds like you're in a financial bind. Perhaps consult one of the free financial counselling services to see what suggestions they have.

  • garetz on 18/03/2021 - 19:21

    You do understand, if you make the minimum repayments monthly you will never pay off your credit card ? You are basically going to be paying interest compounded at whatever the exorbitant rate your credit card is charging.

    • obses2ion on 19/03/2021 - 11:13

      Sure do - thanks. Unfortunately not in a position to make regular repayments.

    • Colin2905 on 20/03/2021 - 07:49

      I usually take no notice of the "Minimum Repayment Warning", but on my most recent Citibank (FFFL) statement of about $6100 it says it'll take nearly 19 years to pay it off by only paying the minimum payment (currently $123), and paying an estimated total interest of nearly $9200. Ouch.

  • ozbargainsam on 18/03/2021 - 20:01
    +1

    All the usual 'credit cards are a trap' apply here.

    While the payment plan rate is lower than the regular rate (13 vs 20%), it's still way higher than a personal loan. So the answer is still a 'no'.

  • AirbusA389 on 18/03/2021 - 22:42

    just set up a excel spreadsheet and see the numbers for yourself.

  • Tech5 on 18/03/2021 - 23:05

    They really should include financial literacy classes back in school.

    Whether you subscribe to the good debt/bad debt school of thinking, or just think all debt is bad… Credit cards (other than a backup Line of credit or paid off in full per month), are bad

    • obses2ion on 19/03/2021 - 11:11

      Doesn't really answer my query. The point is, I'm in this predicament now. Thanks for the helpful insight. :-)

  • daft009 on 21/03/2021 - 13:47
    +1

    What is the interest rate on the plan?

  • dp1 on 25/03/2021 - 21:13
    +2

    It was worth it for me one time, bought 50% of a car on Amex, 4% setup fee then 0% over 12 months. Car loans at the time were 7%-plus, and I only needed a year to pay it all off. After the plan was running, I kept paying the balance in full on top of the plan instalment.
    It's useful if you have a temporary drop in income short term and you know you won't keep extending the debt period after 12 months.

  • hughes on 27/03/2021 - 19:38

    Depends on interest rate and fees. I have an offer for "0% p.a. for 12 months. A one-off 1.90% fee applies" plus they give you a $100 gift card if you take out $1000 or more. 1.9% is cheaper than some home loan rate.

Login or Join to leave a comment
Login Join