If you’re unsure which repayment option suits you

Examples to help you decide if you should repay money you owe in full or over time.

Example 1 - Repaying in full

Ray gets a letter notifying him that he’s been overpaid. Ray would like to pay the debt all at once so he doesn’t have to manage it over time. He has enough savings to pay the debt, while still having money left over for general expenses and emergencies.

Ray looks at his budget and considers how paying the money now will impact him in the weeks to come. Ray can see that if he repays all the money now, he can still meet all his upcoming necessary expenses. Ray goes online and repays the debt in full by the due date.

Example 2 - Repaying over time

Yasmin gets a letter notifying her that she’s been overpaid. She doesn’t have enough money to repay the debt all at once. Yasmin enters into a payment arrangement, paying off the money in instalments. Her job pays her on a fortnightly basis, so she enters into a fortnightly payment arrangement.

While repaying the money, Yasmin gets a new job with higher pay. Now she’s getting paid more, Yasmin increases her payment arrangement to pay off the debt faster. When she has repaid the money, Yasmin uses that fortnightly payment amount to put towards savings.

Page last updated: 2 September 2021