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.”