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ASIC reveals Australians struggling under $45-billion credit card debt

Deborah Knight
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How bad is your credit card debt?

If it’s something you feel bad about, you’re not alone.

One is six Australian consumers are struggling under a mountain of debt — a total of $45 billion — and it’ s likely most of it will never be repaid.

The report from the Australian Securities and Investment Commission (ASIC) proposes tougher regulation to ensure consumers are only given credit limits which can be repaid within a three-year period.

ASIC’s Michael Saadat tells Deborah Knight the amount of interest consumers are paying is concerning.

“$31 billion of that $45 billion is being charged interest.”

He says the corporate regulator is calling on banks to practice responsible lending.

“The bank will need to make sure the consumer can pay back that credit limit within three years.”

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