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Occasional Revolvers pay interest occasionally due to "once in a while" forgetting to pay their the Closing Balance by the Payment Due Date. Below is an extract from The Senate - Economics References Committee - Interest rates and informed choice in the Australian credit card market - Dec 2015:
'Revolvers' and 'Transactors' 2.15 Industry and regulatory analysts commonly categorise cardholders as 'revolvers' and 'transactors'. Revolvers typically pay interest on their balances (as they carry forward, or 'revolve', card balances over time), whereas transactors typically pay off their balance in full and thereby avoid paying interest on their balances. According to the RBA, revolvers are more likely to hold lower-rate cards than transactors, and transactors are more likely to hold higher-rate rewards cards.17 2.16 The RBA advised that the proportion of revolvers is higher among low-income households and when high-income households do fall into the revolver category, they are more likely to be 'Occasional Revolvers' as opposed to 'Persistent Revolvers'.18 2.17 Drawing on data from the household, income and labour dynamics survey in Australia (HILDA), Treasury also noted that low-income households have more credit card debt relative to their incomes and pay more in credit card interest relative to their incomes than high-income households (although higher income households pay more interest in absolute terms). HILDA data similarly shows that low net worth households pay higher proportions of interest relative to their income.19 Summarising the data in its submission, Treasury advised that low income households: would be more likely to be paying the high interest rates charged on credit cards and be more likely to be subject to high additional fees and charges. In particular, they will be more affected by the practice of backdating interest charges when cardholders fail to pay off their full balance at the end of each billing cycle.20 17 Reserve Bank of Australia, Submission 20, p. 5.18 Reserve Bank of Australia, Submission 20, p. 6.19 Treasury, Submission 17, p. 2.20 Treasury, Submission 17, p. 3.21 For example, see Good Shepherd Australia New Zealand, Submission 5, p. 5.See Revolvers, Persistent Revolvers and Transactors. |
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