Freeze credit card repayments
Roland Bleyer, the founder of one of Australia’s largest independent credit card comparators, credit.com.au, has called for credit card interest and repayments to be put on hold for six months.
Bleyer said those holding credit card debt are the most vulnerable now, with some cards – often rewards cards - charging over 20% interest.
"Credit card debt can spiral out of control pretty quickly and damage people's credit score without them even realising it," Bleyer said.
"The only way to help people get through the next six months is for banks to freeze credit card interest and payments for six months.”
He said unless the banks act, there won’t be any credit card business in six months as few people will be eligible to apply for a credit card on the other side of COVID-19.
"Many banks have come forward to offer six months break from home loan payments; we need the banks to do more,” Bleyer said.
“We see credit card debt as a huge problem for Australians in the COVID-19 pandemic. The banks need to recognise this and come to the party.
“I am calling on them to provide customers affected by COVID-19 with a hiatus period of six months - where credit card interest and repayments are put on hold.”
AUTHOR
Chris Dastoor
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
