Your credit card statement includes the Managing your repayments section to support you in managing your account effectively.
Your statement requests for a minimum payment amount each month. This must be paid by the due date to avoid late fees and being overdue. However, only paying the minimum each month may mean your credit card balance will take longer to be paid off.
The Managing your repayments section provides a long-term view of your payments so you can see how paying above your minimum payment each month can reduce your debt faster and save on interest.
The Minimum Repayment Warning shows you:
- How long it would take to pay off your closing balance if you only paid the minimum payment each month.
- How much you’d need to pay each month to pay it off in two years.
- How much interest you could save by doing so.
Keep in mind: This is an estimate based on your current balance and doesn't include future purchases or fees.
Why is it an estimate for two years?
All credit card providers, including Latitude, are required by law to show what you'd need to pay to clear your balance in 2 years. It’s designed to help you make informed financial decisions.
You can opt to make additional payments when you can to minimise the amount of interest you pay.
Why doesn’t the Minimum Monthly Payment pay my account off within 2 years?
When you carry a balance and interest is charged, the Minimum Monthly Payment will pay the interest and credit card fee charges before reducing your balance. You are required to make this Minimum Monthly Payment to avoid late fees and ensure you don’t go overdue.
Why is it a warning?
Because carrying a balance and only paying the minimum can be expensive over time. By referencing the Managing your repayments table, you know how much you should budget to pay your account off faster and how much you can save.
When would I pay my balance off faster than the amount in the 2 year estimate?
If you’re on an Equal Monthly Payment plan, you pay the same amount each month for a set period. When the remaining plan period is less than 2 years for these purchases, we still include the full instalment amount, so it will pay off other balances faster if you continue to pay this amount.
Let’s say:
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You bought something for $6,000 under a 60-month Equal Monthly Payment plan.
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Your monthly instalment is $100 (already included in your Minimum Monthly Payment).
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If you have 6 months interest free left, we still include the $100 in the 2-year estimate ($2,400).
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If your other balances is less than $2400, you’ll pay it off earlier.
Remember, this is an estimate and it updates every month – check your latest statement for the most accurate picture.
I have interest free purchases longer than 2 years – why do I need to see a warning and pay it off within 2 years?
Latitude and other credit card companies are required to show the Minimum Repayment Warning including how much you need to pay each month to pay your account off in 2 years. We recommend checking your Interest Free Summary alongside the Managing Your Repayments section to help you get the most out of your interest free period.
Why does the Managing your repayments table change each month?
Your statement reflects your current balance at the end of the statement period. So, if you've made new purchases, extra payments or been charged fees, the forecast updates to reflect that.
Each month gives you a fresh snapshot of your repayment progress – helping you stay in control of your finances.