Should you pay off Afterpay or your credit card first?
Updated 2026-10-15 · Australia
Usually the credit card. Moneysmart's advice is to put extra money toward the debt with the highest costs (interest and fees). Credit cards often charge around 20% a year; buy now pay later instalments typically charge no interest but do charge late fees. So: make every BNPL instalment on time, and throw every spare dollar at the card.
Avalanche vs snowball
Avalanche pays the highest-interest debt first and saves the most money — it matches Moneysmart's guidance. Snowball pays the smallest balance first for quick wins. Try both in our free debt payoff calculator.
A quick example
Credit card $3,200 at 20.99%, car loan $14,500 at 8.9%, Afterpay $300, personal loan $6,000 at 12.5%. Paying minimums plus $200 extra a month with the avalanche method clears everything in 30 months instead of 51, saving roughly $2,400 in interest (try your own numbers in the calculator).
Frequently asked questions
Does Afterpay affect my credit score?
BNPL providers can report to credit bureaus; missed payments can hurt. Pay on time.
Where can I get free help?
The National Debt Helpline is free: 1800 007 007.
Sources
Last checked 2026-10-15.