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
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
