Freeze credit card repayments

covid-19/coronavirus/credit-card/debt/

3 April 2020
| By Chris Dastoor |
image
image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS