Starting this year, Australians will find it harder to apply for credit cards, and Australia will reform the rules to curb unruly lending, according to couriermail.com.au.
Consumers who sign new deals must prove that they can repay their credit cards within three years.
The new credit card regulations, which came into effect on January 1, include:
Credit card providers must provide consumers with the ability to cancel or reduce credit lines online;
Credit card issuers can not contact consumers to provide an increase in the amount of services.
Surprisingly, consumers don't have to pay in full within three years, and most credit cards can still pay a minimum amount of money.
Sally Tindall, a spokesman for RateCity, a financial comparison site, said that while limiting credit card quotas would prevent consumers from owed credit cards, it was also becoming more difficult for new consumers to apply for credit cards.
"for those who want to apply for a new balance carry-over card to set aside time to pay their Christmas debts, the new rules come as a surprise to many who will find their credit cards smaller than they used to be. Some card issuers may refuse to issue cards directly. "
The balance carry-over card allows consumers to transfer debt from one of the higher-interest cards to a new card that has no interest for two years, making it easier for customers to pay off their debts on a non-interest-free basis.
But Peter White, director of operations at the Australian Financial intermediaries Association, said that once customers had new cards, borrowers would not be required to ensure they were able to pay off their debts within three years, and he was worried that the new rules would hit retail spending.
"people may have run out of credit card spending quotas in the past. This is an overthrow of a string of people, just because of the bad behavior of individual people, the government has restricted credit. According to the latest figures from the Australian Reserve Bank, Australians owed $51.5 billion in principal and $31.7 billion in interest.
Data show that in fiscal year 2017 / 18, Australians spent 1.5 billion yuan on credit card charges.
From 2012 to 2017, nearly 62% of consumers have only one credit card.
Two modes of repayment:
First:
Credit card limit: 10,000 yuan
Monthly repayment: $203
Total interest: $21761
Repayment time: 38 years and 10 months
Second:
Credit card limit: 10,000 yuan
Monthly repayment: $357
Total interest: $2606
Repayment time: 3 years