Some Credit Card Issuers And Banks Willing To Do Deals With Borrowers On Amounts Owed
Personal credit growth has slowed to levels seen in the 1991/92 as consumers prepare for a prolonged recession. The federal government’s economic stimulus payments has resulted in repayments on credit cards rising by 22.2 per cent in December, when the first-round thousand dollar cash handouts were made to families.
Some card issuers and lenders are cutting deals with borrowers and accepting as little as 60 cents on the dollar, just to be able claim some of the stimulus money and entice indebted consumers to pay off some if not all of their loans.
“Some of the second-tier card issuers in particular are caving in very readily to consumers, offering them around $3,000 to pay off $5,000 debts. One or two of the second-tier lenders are very soft touches at the moment and will cut deals very readily,” Melbourne-based debt advisor and agreement administrator, Donna Elliot, said.
Some industry financial advisers even say that even Citibank has been particularly easy to deal with of late. Contrastingly the big four banks, in particular ANZ and Westpac have been maintaining a harder stance with their borrowers.
Australian Credit Card Deals Compared
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