Credit card firms making deals on debt

By Mozo ·

Many credit card firms are open to negotiation when it comes to people repaying their debts, one debt adviser has found.

Speaking to the Sheet, Melbourne-based debt management guru Donna Elliott reveals that with Aussies looking to clear their credit card debts with the recent government cash handout, some providers are willing to lower the outstanding value to get their hands on a bigger chunk of the cash.

Ms Elliott said that some credit card companies, particularly the second-tier lenders, are willing to wipe off $1 worth of debt for 60 cents.

"One or two of the second-tier lenders are very soft touches at the moment and will cut deals very readily," she said, with Citibank singled out as being particularly willing to trim credit card debt down to size.

However, ANZ and Westpac were said to be far less keen on the practice and were unprepared to budge in debt haggling.

Research from Mozo has shown that despite the rounds of interest rate cuts from the Reserve Bank, many "cheap" credit card companies are continuing to ping Aussies with repayment rates above 20 per cent.

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