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ING to increase minimum monthly credit card repayments

10 May 2017

ING to increase minimum monthly credit card repayments

Following ING’s announcement in March regarding the launch of their first Australian Credit Card today they confirmed that it will include a high minimum repayment threshold, to help cardholders control their debt

This initiative by ING is based on the hope that higher minimum repayments will help cardholders pay off their balances faster and avoid debt traps.

The minimum repayment required on credit cards is usually in the range of 2 to 3 per cent, but ING Direct confirmed it would make borrowers pay back a minimum of 10 per cent a month when it launches credit cards this year for the first time.

ING Direct spokesman John Arnott said the move would help Australians handle debt better. “We feel 2 and 3 per cent (minimum monthly repayments) is too low to give customers control over their finances ... and to ensure they are not getting into a debt trap,’’ he said.

“To be able to offer responsible lending to customers we’ve increased that amount (to 10 per cent) to ensure their borrowing is in control.”

Australians owe $52.5 billion on credit cards and more than $32.9 billion is accruing interest. On the average card debt of about $4,200, ING customers will have to pay back $420 per month.

Consumer watchdog Choice spokesman Tom Godfrey said the move was “great to see a bank willing to try something different”.

“A higher minimum repayment will see ING issuing credit cards to people more likely to be able to afford to pay off their total balance,’’ he said.

The new ING credit cards will initially be launched to existing ING Direct customers prior to a full release later in the year. 

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