Changes to bank accounts could result in them becoming debt traps, one industry expert has noted.
Personal bank accounts could become debt traps if proposed changes are made to them, one industry expert has warned.
According to Consumer Action Law Centre's Nicole Rich, financial organisations are attempting to boost their profits by enticing people to take out an overdraft on a transaction account.
She added: "Encouraging people into debt just to keep up with living expenses - via credit cards, account overdrafts, or other products - is simply not OK."
Ms Rich believes that the companies are trying out new ways to get individuals hooked on debt and make profits from the interest as consumers can now manage their credit cards better.
But these comments come after Catherine Cashmore noted in a piece for the Age that Australians' love for credit is refusing to wane with people getting into debt due to a lack of ability to alter their lifestyle and save money.
By Emma North
