Big spending, debt-ridden Aussies will get the fright of their lives when new-look credit card statements arrive in letterboxes next year - and Kiwis should brace themselves for similar shocks.
The Australian financial reforms will force banks to tell customers how many years it will take to clear their debt with minimum repayments and the dollar-figure of interest charged over that time. The statements must also reveal how much time and money the customer could save by increasing the repayments.
Retirement Commissioner Diana Crossan said she wanted similar rules in New Zealand. Reforms in the United States led to a significant increase in repayments.
"They're seeing that people are selecting the suggested repayment instead of going for the minimum repayment," Crossan said.
Mangere Budgeting Advice chief executive Daryl Evans said if the true cost of credit card debt was known, many would never get into it.
