How much do you spend on your credit card?
If you’re like me it’s probably the way you pay for many of your transactions.
Recently stats from the Reserve Bank of Australia confirm Australians are relying on credit cards for spending more than ever.
Now there’s nothing wrong with this as long as you use it wisely and can afford to pay of your credit card at the end of the month
Apparently, a total of 2.77 billion purchases were made with credit cards in the 12 months up to April 2018, which is up from 1.38 billion in 2008.
This represents a 100% increase in ten years, since 2008.
And the amount of money spent on credit cards is also at an all-time high, with the 12-month rolling total at $321 billion to April 2018.
This figure is up from $306 billion in the same period up to April 2017.
Graham Cooke, Insights Manager at finder.com.au, says consumers may be turning to credit to fund higher living costs.
“Over the past decade, the cost of living has soared.
From food and beverage to property prices to school fees, Aussies are forking out more than ever with many turning to credit to make ends meet.“Aussies spent a staggering $600,000 per minute on plastic to April this year, which is the highest amount ever,” he says.
Mr Cooke says the availability of new payment methods such as Mastercard’s PayPass and Visa’s payWave could be another reason behind this trend.
“It’s now easier than ever to pay on credit. With ‘tap and go’ technologies, consumers can simply wave their credit card or their mobile phone in front of a terminal, which could explain why plastic spending is at a high.“Online purchases may also be fuelling credit card activity particularly for cardholders who want to earn rewards points for their spend,” he says.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.