AO Finance – Instalment Plans

It’s one of the payment options that are available under AO Finance. Once you’ve been accepted for AO Finance, you could be offered this option when you go through to checkout, if NewDay think you are eligible. Choose whether you’d prefer to spread the cost of the appliance and interest over 12, 24, 36 or 48 months, and NewDay will calculate how much you need to pay back each month. This amount will be fixed for the length of the plan, and you won’t have to make any extra payments.

An instalment plan is a great option if you know you’ll have a regular income for the next year or two. It means you can buy your new appliance now and gradually pay off the cost, without having to worry about any unexpected big, extra bills.

Not everyone will be offered an instalment plan – if it’s not available to you, then it won’t appear as a payment option when you get to the checkout. Whether this plan is offered to you will depend on the result of your credit check and on NewDay’s assessment of your details.

Yes. If you want to spread the cost over a few months, the total cost of your basket must be at least £200. This can include the cost of more than one product, as well as any services you need.

If the cost of the product you’d like gets close to your credit limit, you might not be able to buy it on an instalment plan. This is because the first lot of interest that’ll be added to your balance would bring the total amount above your credit limit. If this happens, you’ll be asked to choose another payment method or payment plan, or to add a cheaper product to your basket instead.

That’ll depend on how long you choose to spread the payments over. If you decide to pay it off over a year, you’ll pay more each month than over 48 months, for example. But, there’ll be less time for interest to build up, so you’ll end up paying less overall.

The only other payment that could be applied to your account is a late payment fee. But, if there are any other costs, you can find more information about them in your Credit Agreement.

If you can no longer afford to make the fixed monthly payments, your instalment plan will be cancelled and you’ll be moved to a flexible credit account. This means that you’ll start being charged the standard interest rate, and you’ll need to start paying just the monthly minimum amount. This will either be £5 (or the full amount you owe, if you owe less than £5), or 1% of the full amount you owe, including interest and fees – whichever is higher. This will take much longer to pay off the balance, but you can make extra payments when you can afford it, to speed things up a bit.

Your first payment will be due one month after you buy from AO. You’ll get an email from NewDay when your eStatement’s ready, and you can make a payment or set up a direct debit on your Online Account Manager or by calling NewDay on 0333 220 2598.

If you have a direct debit, your monthly instalment payment will be taken each month. But, please note that:

• If you have set up a full balance direct debit, your next direct debit payment will clear your statement balance, including the whole instalment plan balance. If you want to make the most of the monthly instalment payments, you’ll need to amend your direct debit.
• If you have a fixed amount direct debit and the amount isn’t enough to cover the monthly instalment payment, NewDay will increase your direct debit that month to make sure they collect at least your contractual monthly payment and your monthly instalment payment.
• If you’ve set up another type of direct debit, the amount NewDay takes will include your monthly instalment payment.

To make any changes to your direct debit, please log into your NewDay Online Account Manager, or call NewDay’s customer service line on 0333 220 2598.

To keep your instalment plan, you must keep your AO Finance account up to date. You can do this by staying within your credit limit and making your monthly payments on time.

Yes, you can cancel your instalment plan at any time. Just contact NewDay on 0333 220 2598. If you choose to do this, your balance will be moved to a flexible credit account. This means you’ll be charged the standard interest rate, and you’ll have to make a minimum monthly payment – and more when you can afford it – until you pay off the balance.