Australia’s Most Affordable Payment Plans

Sep 19, 2016

When looking for a payment plan, whether it is for a medical loan with MacCredit or you are looking for finance for another purpose, there are several things to consider. Probably the most important from your perspective is whether the plan you are looking at is affordable. Finance providers usually advertise their deals in terms of interest rates, so it can be difficult to understand what really is affordable for your circumstances.

Affordability Vs. Cheapness

What might appear to be the cheapest deal will not always be the most affordable. The key thing to consider with affordability is that it is specific to your circumstances. Finance companies advertise their cheapest or best deal to everyone, simply because they would need an individual advert for each potential customer were they to look at affordability.

As advertising by finance companies can make their products seem inflexible, you might easily be put off by an advert stating example repayment amounts that are way beyond your means. However, the example rates provided do not need to prove a barrier to you accessing finance.

What is Affordability?

Affordability is simply the weekly (or fortnightly or monthly, depending on the terms of your payment plan) figure that your circumstances mean you can afford to repay. What is affordable is therefore unique for each individual when they are seeking a payment plan. Just because a specific deal seems attractive or is affordable to one person, this doesn’t necessarily mean it will be attractive or affordable for all. You can work out what is affordable for you by taking some time to plan your personal or household budget, and coming up with your disposable income figure.

Once you know the figure that you could afford to comfortably repay, you can then tailor your shopping around for payment plans to meet this amount.

How Calculating Affordability Will Help You

You’re searching for a payment plan as you need to borrow $10,000, and identify two different providers. Provider A offers a 15% interest rate, while Provider B offers a 14% interest rate. The immediate thought is that provider B will be cheaper. However, you also need to consider the length of the payment plan.

In this example, were Provider A offering a loan term of 60 months, and Provider B a loan term of 30 months, Provider A would be the much more affordable option, as demonstrated in the table below.


  Provider A  Provider B
Loan Amount  $10,000  $10,000
Interest Rate 15% 14%
Loan Term  60 months  30 months
Weekly Repayment  $59.48 $99.25


As you can see, despite Provider B likely being perceived as the best deal due to the lower interest rate, by going with Provider A you can access the financial help you need and save nearly $40 a week on the repayments.

While calculating your affordability will help determine how much you can borrow now, longer term it can help you avoid credit infringements such as missed payments and defaults.

How MacCredit Can Help

Here at MacCredit, it is our aim to match you with the most affordable payment plan for your circumstances. We work with you to understand your affordability and will then find the best option for you. This allows us to avoid promising cheap deals or interest rates only for our customers to end up paying more than they thought they would, or feeling that a MacCredit personal loan is not affordable.

We will always look to match you with a payment plan that suits your circumstances and ability to comfortably meet your repayment obligations.

If you are looking for an affordable payment plan to cover medical costs, call us at MacCredit now on 1300 884 355.

WCF Medical Pty Ltd - Suite 104 Level 1, 30 Cowper Street, Parramatta NSW 2150

ACN 609 032 242 - Credit Representative 484002 is authorised under Australian Credit License 389087


Approved customers only. Terms, conditions, fees and charges apply. All applications are subject to our lending panel’s lending and approval criteria. Settlement times may vary depending on circumstances. Loan repayment terms range from 18 months to 7 years. Interest rates range from 7.65% p.a. (7.65% p.a. comparison rate) to 29.99% pa (31.13% p.a. comparison rate) for unsecured loans, and from 8.95% p.a. (10.56% p.a. comparison rate)  to 29.99% p.a. (31.13% p.a. comparison rate) for secured loans.
Comparison rates are based on a loan of $30,000 over 5 years.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates are subject to change.
EXAMPLE: An unsecured personal loan of $30,000 borrowed for 5 years with the interest rate of 7.45% p.a. (9.07% p.a. comparison rate), would estimate to a minimum total amount payable of $37,741.60 via the weekly payment option (including a $495 establishment fee and $13 per month administration fee). Rates are subject to change.