The Courier-Mail

One-third fail to pay off debt after transfer deals

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AT LEAST three in 10 customers do not pay off debt transferre­d to a new credit card under 0 per cent balance transfer deals, a major bank has revealed.

In a submission to a Senate inquiry into credit card interest rates made public yesterday, ANZ said 70 per cent of people either transfer again or clear their balance before a high interest rate kicks in.

“In ANZ’s experience most customers use balance transfers as designed – to reduce interest payments and repay their credit card debt,” the statement said.

But in another new submission, Financial Counsellin­g Australia said: “Balance transfers clearly target people struggling with debt and can leave them worse off.”

The hearings resume today.

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