What is an instalment plan and how can it help?

Discover how instalment plans can make big purchases feel more manageable. Learn how to spread the cost and plan ahead.

Written by Hayley Bevan and Scott Yule

Published on February 13th, 2026

Last reviewed on February 19th, 2026

4 mins read

News and insights

What are instalment plans?

Instalment plans are designed to help you pay for a purchase over time. They allow you to spread the cost, splitting the total up into smaller, more manageable chunks that you pay off every month with scheduled payments.

For example, let’s say your car breaks down and needs to be repaired, which is a big expense. You could set up an instalment plan for the cost when you pay for the repairs, or afterwards.

You can then split the cost of the repairs over three months or more and make scheduled payments each month instead of paying for the total cost all at once.

This means your car’s back on the road sooner, with a clear, fixed plan to cover the cost of the repairs, but without straining your finances.

How do instalment plans work?

This is how instalment plans usually work:

You find something you want to buy, and pay with your credit card
You set up an instalment plan – either during your purchase or afterwards
You receive your purchase
Every month, you pay off a chunk of the total until your purchase is paid off

How do instalment plans work with Aqua?

With Aqua, instalment plans work in the same way but with a few extras:*

You find something you want to buy. Just pay with your Aqua credit card. You can set up an instalment plan later, as long as your purchase is £30 or more and was within the last ten days. Remember, you can group up to ten eligible transactions into a single plan.
If you have an Apple device, you can pay with Apple Pay online or in-app, and you can set up an Aqua instalment plan right from the checkout.
You can choose to pay off your purchase in as little as three months or as much as two years You can even give your plan a name, like ‘winter coat’ or ‘washing machine’.
Representative 39.9% APR (variable) for Aqua Classic

What are the benefits and things to consider when it comes to instalment plans?

There’s lots to think about when it comes to instalment plans.

They’re budget-friendly: you can split payments so they fit into your monthly budget, and you don’t usually need to pay a large sum upfront.

They give you control: you can spread the cost over time, so you get more control over your finances. With Aqua instalment plans, it’s also easy to shorten or extend your plan if you want to. You can visit the Aqua app or Online Account Manager and go to ‘edit plan’. For example, you could change your plan from three months to six months. They can help you build your credit: if you’re on a credit-building journey, paying your instalments on time every month could help you build your credit score.

Things to consider before you take out an instalment plan:

Making repayments

When you enter into an instalment plan, you’ll need to make sure you’ve budgeted for the repayments and can make them on time every month. If you don’t, your instalment plan will be cancelled and added to the money you owe on your purchase balance. You'll pay your standard purchase rate of interest on it.

Interest, fees, and penalties

Some instalment plans charge service fees, interest and penalties for late or missed payments. If you don’t make your payments on time, or you go over your credit limit, this could make getting credit in the future more expensive and difficult. You’ll also need to pay additional charges.

Budget management

You’ll need to be careful not to overextend yourself and ensure that you can afford the monthly repayments.

Could instalment plans help you handle unexpected expenses?

An instalment plan could be a smart way to handle unexpected expenses, whether it’s a last-minute family emergency or a broken-down washing machine. You can use your Aqua card to pay for unexpected expenses and then set up an instalment plan to pay off the cost over time.

Is an instalment plan a smart way to manage a bigger purchase?

If you’re planning a big purchase, instalments could be a useful way to spread the cost. Whether it's a car repair, the weekly food shop or a much-needed new vacuum cleaner, instalments could help you avoid dipping into your savings or emergency fund – keeping your financial safety net for a rainy day. An instalment plan lets you spread the cost over time, without blowing your budget. It could also help you prioritise your spending, allowing you to cover other needs or continue saving for the future, while still sticking to your plan to pay off that big purchase.

Ultimately, instalment plans could be a useful way to manage your expenses effectively. They can align with your cashflow, help you to plan ahead and form a valuable part of your financial toolkit, making it easier for you to stay on top of your finances.

With an Aqua credit card, you can set up an instalment plan for up to two years, giving you the flexibility to spread the total cost over that period. So whether you're planning a big purchase, handling unexpected expenses, or simply looking to improve your financial stability, instalment plans could provide the financial breathing room you need.

If you don’t make your payments on time, or you go over your credit limit, this could make getting credit in the future more expensive and difficult. You’ll also need to pay additional charges.

Failure to make payments on time or to stay within your credit limit means that you will pay additional charges and may make obtaining credit in the future more expensive and difficult.

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