It seems that bad credit habits are returning as Australia’s total credit card debt has ticked up for the second month in a row, based on the latest data released by the RBA.
In fact, the data shows the total credit card bill attracting interest charges increased by $419 million to $17.3 billion.
This is based on personal credit card data in original terms.
November spending spree hit debit and credit cards hard this month
Australians went on a spending rampage in November, making a gigantic $75.69 billion worth of transactions on their credit and debit cards in just one month – the highest value of monthly transactions in the RBA’s records.
Ms Sally Tindall, Research Director for RateCity.com.au commented:
“Australians opened their wallets in November, spending a mammoth $75.7 billion on their debit and credit cards in just one month.
The Click Frenzy, Black Friday and Cyber Monday sales undoubtedly fuelled this surge as Australians stocked up ahead of Christmas,” she said.
While many people were buying essentials to save money in the months ahead, some shoppers could find themselves in hot water if they can’t pay their credit card balance in full by the time the next bill hits their inbox."
The record high in debit and credit card transactions comes as Australia’s total credit card debt accruing interest rose for the second month in a row.
Ms Tindall further commented:
"Bad habits look to be creeping back as some households reach for the credit card to make ends meet.
Many family budgets have been through the wringer over the last couple of months as the cost of just about everything continues to rise.
While the credit card can help plug a hole in the budget at the end of the month, it’s a quick fix that can easily unravel when the bills start rolling in.
It’s often hard to see any other way through the month, but there are options out there if you can’t pay the bills, other than reaching for the plastic.
Switching to cheaper brands at the supermarket, renegotiating your regular bills, selling things you don’t need around the house – these all may all seem trivial but together the savings can really add up.
If you do have credit card debt, consider moving it to a lower-rate card or personal loan, where you are forced to pay the money off within a limited time with little capacity to add to it."
