There have been concerns about an “economic cliff” in September with the end of the loan deferral period expected to coincide with the scheduled end of Federal Government support measures, including the JobKeeper wage subsidy and the JobSeeker coronavirus supplement.
The ABA said people who were still experiencing financial difficulty would be contacted towards the end of the six-month period to work out whether they could restructure or vary their loan.
Measures could include extending the length of the loan, converting to interest-only payments for a period of time or consolidating their debt.
“Where these arrangements are not in place at the end of a six-month deferral, customers will be eligible for an extension of their deferral of up to four months,” Ms Bligh said.
“Customers will be expected to work with their bank, during this extra time, to find the best solution for them.”