Australians continue to face the pressures of higher costs of living, particularly with credit card spending.
In fact, Australia’s total credit card bill has climbed for the second month in a row to $17.77 billion as households reach for the plastic to make ends meet in the face of rising costs.
The latest RBA statistics show the total debt from personal credit cards attracting interest rose by $3.5 million to $17.77 billion - the highest level since August 2021.
The RBA statistics show this is the seventh month out of the last eight that credit card debt has risen.
Interestingly, the number of credit card accounts continued its slow recovery, increasing by over 17,000 in the month of May, and almost 200,000 compared to a year ago.
Credit card statistics: personal credit cards in May 2023
Note: commercial cards are excluded.
| Amount | Monthly change | Year-on-year change | |
| Debt accruing interest | $17.77 billion | +$3.5 million
+0.02% |
+$447.9 million
+2.6% |
| Number of accounts | 12.57 million | 17,494
+0.1% |
190,973
+1.5% |
Source: RBA, released 7 July 2023, original data, excludes commercial cards. Monthly change is April 2023 to May 2023, year-on-year change is May 2022 to May 2023.
Total value of transactions: credit and debit cards in May 2023
| Amount | Monthly change | Year-on-year change | |
| Value of credit card transactions (personal cards only) |
$26.19 billion | -$529 million -2% |
+$1.25 billion +5.0% |
| Value of debit card transactions | $48.08 billion | +$1.04 billion +2.2% |
+$4.41 billion +10.1% |
| Total | $74.27 billion | +$513 million +0.7% |
+$5.66 billion +8.2% |
Source: RBA, released 7 July 2023, seasonally adjusted data, excludes commercial cards. Monthly change is Apr 2023 to May 2023, year-on-year change is May 2022 to May 2023.
RateCity.com.au research director, Sally Tindall, said:
“The total credit card bill keeps on climbing as more and more families reach for the plastic to make ends meet.
The latest RBA statistics show total credit card debt attracting interest charges from households has risen for seven of the last eight months.
It’s a concerning statistic that’s set to keep on rising as households increasingly feel the squeeze from the double whammy of inflation and the RBA hikes.
Credit cards are slowly coming back into fashion with the total number of accounts up almost 200,000 compared to a year ago.
This is likely to be for a range of reasons, with some people in search of frequent flyer points, while others are looking to arm their wallets with a range of options.
Some may have closed their account in favour of buy now pay later products but are coming back to a less restrictive form of credit.
Plugging a hole in your budget using your credit card can be a slippery slope.
If you don’t have enough money to clear that debt in full the very next time your bill hits your inbox, the bank will slog you with interest.
The average interest rate for those who have credit card debt is a concerning 17.71 per cent, but on certain cards, the rate can climb as high as 25.8 per cent.
If you’ve got a hole in your budget, keep the credit card locked in the bottom drawer and find an alternative way to repair it."
Applying for hardship with your bank or energy provider can be one way to buy yourself some much-needed time to get your finances in order.
It’s also well worth calling the National Debt Helpline which can put you in touch with a personal financial counsellor for free on 1800 007 007."
