Although it’s probably quite tempting to skate by and just make the minimum repayments due each month, doing so will cost you a lot more money in the long run. Not only will it take a long time to pay off the debt, along the way you’ll end up paying a lot more in interest.
In an ideal world, you’d repay your credit card in full each month. If that’s not possible, then try to at least pay a little more than your minimum, that way you’ll chip away at your debt and reduce the total amount of interest you pay in the process.
Your bank will tell you the minimum amount you need pay off your credit card each month.
At Kiwibank, that’ll be either 5% of your outstanding balance as at the date of your statement, or $10, whichever is higher. Some other banks’ minimum repayments are calculated at less than 5% of your monthly balance – so if you switch to us from another bank you might find your monthly minimum payments are higher. We set the minimum higher because we want you to pay off your balance sooner.