Tips to minimise credit card interest

If you can, paying your full credit card balance each month can help you pay less interest. Here's how.

Minimum repayments

Each time you get your monthly credit card statement, it will include your minimum payment due.

You need to pay at least the minimum payment amount by the payment due date, otherwise you may be charged a late payment fee. You can choose to pay more if you can. A good rule of thumb is to always try to pay off the full amount on your statement.

Why it's a good idea to pay more if you can

The more you pay, the less you owe. By paying more than the minimum payment due, you’ll pay less in interest – and could potentially pay off your credit card sooner.

Here’s an example showing the difference paying a bit more each month can make. This example uses the Sorted Debt Calculator and is based on a credit card with:

  • Outstanding balance of $2,000
  • Interest rate on purchases of 13.90% p.a.

It also assumes you make no additional purchases or cash advances, aren’t charged any fees, and the interest rates don’t change.

How long to pay off your balance

How much estimated interest you’ll pay

Amount you pay each month: $60 (first minimum payment)

42 months (approx)


Amount you pay each month: $120

19 months (approx)


This example shows that by increasing your monthly repayment from $60 to $120 you could pay off your card balance 23 months sooner and pay an estimated $279 less in interest.

Visit the Sorted website to calculate different scenarios and see how you could pay off your own credit card faster and pay less in interest.

Finding a bit extra

If you’d like to pay off your credit card sooner, have a look at your budget and see if you could put any extra towards your credit card payment each month.

Circumstances change, so it’s a good idea to do this often and adjust your payments depending on your situation.

Important information

The information is current as at March 2024 and may be subject to change.

Information in this article refers to personal credit cards, is general in nature only and does not take into account your personal objectives, financial situation or needs. The information may not reflect how interest and charges are calculated under your credit card conditions of use. We recommend you review your personal credit card conditions of use for information about the terms that apply to you. Talk to us for financial advice and see our advice statement.

Interest rates and fees are subject to change.

Lending criteria, terms and fees apply to all ANZ credit cards. See Rates, fees and agreements for more information