Dental payment plan calculator: what will each payment be?

Dental treatment can be expensive, and healthdirect notes that most dental care in Australia is not covered by Medicare. A dental payment plan spreads the cost over time. It may be offered by the practice, by a buy now pay later service or as a loan. Moneysmart explains that buy now pay later means paying by instalments instead of the full amount upfront. Smaller purchases are usually paid off over a few weeks, while bigger ones can take several years.

This calculator shows what an offer costs in total. Enter the amount, any deposit, the term and the yearly rate from the offer. The tool works out equal monthly payments, the interest and the total of all payments. It is an estimate. Your lender's contract is what counts, including any fees and what happens if you miss a payment. Run the calculator for each offer you are considering, using the same amount and term.

Many payment plans are advertised as "interest free" or "0% interest". Moneysmart warns that while they may not charge interest, they may charge fees, such as late fees, monthly account-keeping fees, payment processing fees and establishment fees. You may also pay bank fees if your account is overdrawn when a payment is due, or interest if you pay by credit card. Some arrangements must have caps on the fees they can charge, so check the contract. Add any fees to the total the calculator shows.

For loans, Moneysmart suggests comparing the comparison rate, which includes interest and most fees, rather than the interest rate alone. Every buy now pay later application triggers a credit check, and late or missed payments can be reported and lower your credit score. Lenders consider this when you apply for other credit, such as a car loan or mortgage. Using one service at a time and budgeting for each payment makes plans easier to manage.

• What fees apply, including late and monthly fees?
• What is the comparison rate, if it is a loan?
• What happens if a payment is missed?
• Does the plan cover the whole treatment, including reviews?

Before you borrow, check what help may apply. Children may be covered by the Child Dental Benefits Schedule, and adults with a Health Care Card or Pensioner Concession Card can use public dental services in their state or territory. If you have extras cover, your health fund may pay part of the cost. Healthdirect also suggests asking for item numbers, comparing a few dentists and asking whether less expensive alternatives exist.

Moneysmart describes No Interest Loans, offered by community organisations, for essential goods and services including medical and dental costs. They have no interest, fees or charges, there are no credit checks, and income and other eligibility rules apply. Moneysmart also warns about scam websites that pretend to offer these loans. If you are struggling with repayments, contact your provider, because buy now pay later providers must have hardship services. The National Debt Helpline offers free financial counselling on 1800 007 007.