Defined Terms and Documents

Australian Bankers Association statements to Senate Economics References Committee  - 10 August 2015

5.31      The ABA also advised the committee that few cardholders were actually making minimum repayments on an ongoing basis:

The number of people we are talking about—I am quoting from memory, but I think this is a ballpark figure—I think we said three to four per cent make the minimum repayment in any month, but the number of people who only ever make the minimum repayment, month by month, in a year is very tiny. The industry data suggests it is less than one per cent. There are not that many people out there who only ever make the minimum repayment, and, for most people making minimum repayments, a couple of months later they are back paying more than that.[30]

5.86    NAB's advice was consistent with industry data referred to by the ABA, which indicates:

    ...less than one per cent of all customers, not just credit card customers, are in a hardship arrangement with their bank. Most customers experiencing financial difficulty have their financial situation restored within three to six months.[90]