Banks offer payment holidays to customers with personal loans and credit cards during the corona virus
Banks offer payment vacations to customers with personal loans and credit cards, while millions are struggling to make ends meet during the corona virus crisis
- Payment holidays on mortgage payments are extended to credit card debts
- ING will defer credit card payments by 3-6 months for customers who are struggling
- Major banks are now considering similar offers as the coronavirus crisis worsens
- Coronavirus symptoms: what are they and should you see a doctor?
Banks come to the rescue of Australians in debt who are facing financial difficulties during the coronavirus crisis.
Some of Australia’s leading financial institutions have announced payment vacations for customers who are struggling to pay off their credit and personal debts.
The move comes alongside the banks that offer payment vacations on mortgage repayments to help homeowners.
ING was the first to postpone credit card refunds by 3-6 months for customers with tight cash affected by the deadly virus pandemic.
Australians can postpone their credit card refund until they are back on their feet
Other major banks plan to extend the payment pause offer to credit card holders.
However, there is a catch to ING’s payment holiday on credit card debt.
“During a payment break, credit card refunds are not necessary, but your card is inactive,” the institution states on its website.
“Interest and fees will continue to be added to your balance and at the end of the payment break, your total balance will be higher than before the payment break.”
ING recommends reducing the repayments to the minimum monthly repayment so that cardholders can access their credit card for daily use.
WHERE TO GO FOR HELP
* Tax relief: if you have a debt to the tax office, you cannot pay. Call the Australian Emergency Relief Service at 1800 806 218.
* Unexpected essentials accounts: Don’t go to high interest lenders. Loans without interest and low interest up to $ 3000 available from Good Shepherd Microfinance.
* Utilities are negotiating a payment plan to hold power, water and gas
* Banks will make hardship provisions available if you have trouble paying your mortgage – call your lender
* Create a myGov account at my.gov.au so you have online access to welfare support
* Go to Services Australia and use the payment and service finder to find out what help you can get
* Start up to $ 10,000 in retirement this fiscal year, see here
* The first $ 750 coronavirus supplement goes to those who are registered for income support and who qualify between March 12 and April 13. The second $ 750 payment goes to those who are eligible and registered on July 10. To check here
* The new $ 550 every two weeks coronavirus supplement is added to various social benefits – check your eligibility here
* A list of Services Australia phone numbers for a variety of information lines, from crisis payments to low-income care cards here
* Visit the Services Australia and register for one Jobseeker’s Payment or call to register at 132 850
* You can get it hire assistance from Services Australia if you have a JobSeeker payment.
* National Debt Hotline for free advice and support for those in financial distress 1800 007 007
ING has extended its payment holidays to credit cardholders who are in financial difficulties
CORONAVIRUS CASES IN AUSTRALIA: 2.431
New South Wales: 1029
Western Australia: 205
South Australia: 197
Australian Capital Territory: 44
Northern Territory: 5
TOTAL CASES: 2.431
Financial experts welcome the recent steps taken by the banks to help alleviate Australians’ financial distress.
“People who are already in charge of credit card debt, who have now lost their jobs or are too sick to work, are unlikely to keep up with their refunds,” said Sally Tindall, RateCity spokeswoman. News.com.au.
“Instead of getting extra late payments on top of the interest charges, they really get a delay.”
Financial advisor Scott Haywood advised Australians to first consider freezing higher-interest debt and said they should “cut” their spending.
“They have to take out mortgage credit cards and personal loans if they have a mortgage,” he said.
WHAT WILL CENTRELINK PAY?
The $ 550 two-week coronavirus supplement will increase the following payments for the next six months:
Single, no children $ 1115.70 (from $ 565.70)
Single with a dependent child or children $ 1162 (from $ 612)
Single, 60 years or older, after 9 months against payment $ 1162 (from $ 612)
Worked together $ 1060.80 each (from $ 510.80 each)
Single caregivers such as foster parents $ 1,340.10 (from $ 790.10)
This $ 550 allowance is also added to other welfare categories such as the youth allowance and the household allowance. Check if you get it here
Austudy and Abstudy have since also been added to the recipients, Finance Minister Mathias Cormann told the Senate on March 23
The time-limited coronavirus supplement costs an estimated $ 14.1 billion
The first $ 750 coronavirus supplement, announced March 12
One-time benefit to social assistance recipients registered from March 12 to April 13. Check your suitability here
A second one-off benefit for persons entitled to social assistance registered on 10 July. Check your suitability here
Retirees receive lower social security rates and more flexible super
Lower assumed rates will add $ 105 more to the retirement pension in the first year from May 1. Details are here
Information sheets on all proposed benefits can be found on the website Treasury website