This article is from the source 'guardian' and was first published or seen on . The next check for changes will be
You can find the current article at its original source at https://www.theguardian.com/australia-news/2025/feb/08/australians-rack-up-record-credit-card-spending-as-growing-numbers-struggle-to-pay-off-debt
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
| Version 0 | Version 1 |
|---|---|
| Australians rack up record credit card spending as growing numbers struggle to pay off debt | Australians rack up record credit card spending as growing numbers struggle to pay off debt |
| (about 13 hours later) | |
| Reserve Bank statistics show the national credit card debt sits at $17.8bn, up $236m in December 2024 alone | Reserve Bank statistics show the national credit card debt sits at $17.8bn, up $236m in December 2024 alone |
| Australians racked up a record $28bn in personal credit card transactions in December, according to new data, leaving many households unable to clear debts and paying extreme interest charges. | Australians racked up a record $28bn in personal credit card transactions in December, according to new data, leaving many households unable to clear debts and paying extreme interest charges. |
| The Reserve Bank statistics, analysed by financial comparisons site Canstar, show that Australians are struggling more than ever before to clear purchases made on credit, amid persistently high living costs. | |
| “Credit card debt accruing interest is on the rise on the back of pre-Christmas spending in a cost-of-living crisis,” said Canstar’s data insights director, Sally Tindall. | “Credit card debt accruing interest is on the rise on the back of pre-Christmas spending in a cost-of-living crisis,” said Canstar’s data insights director, Sally Tindall. |
| “With the value of credit card transactions also hitting a record high in December, the national addiction to credit card debt is likely to get worse before it gets better.” | “With the value of credit card transactions also hitting a record high in December, the national addiction to credit card debt is likely to get worse before it gets better.” |
| While some people use credit cards strategically to accrue loyalty points and other rewards, those with outstanding balances at the end of a month can pay interest rates exceeding 20% – plunging them into a cycle of debt. | While some people use credit cards strategically to accrue loyalty points and other rewards, those with outstanding balances at the end of a month can pay interest rates exceeding 20% – plunging them into a cycle of debt. |
| Credit card debt, which is considered unsecured because it is not tied to an asset, has very high interest rates compared with other lending products like mortgages. | Credit card debt, which is considered unsecured because it is not tied to an asset, has very high interest rates compared with other lending products like mortgages. |
| The December credit card statistics, released on Friday, showed that “debt accruing interest” on personal credit cards increased by more than $236m from the previous month to $17.8bn, according to Canstar. | The December credit card statistics, released on Friday, showed that “debt accruing interest” on personal credit cards increased by more than $236m from the previous month to $17.8bn, according to Canstar. |
| The level of interest-accruing debt has risen by about $526m from a year ago. | The level of interest-accruing debt has risen by about $526m from a year ago. |
| Bank data shows customers are also increasingly falling behind on personal loan repayments, which are often unsecured, in another sign of financial stress. | Bank data shows customers are also increasingly falling behind on personal loan repayments, which are often unsecured, in another sign of financial stress. |
| Sign up to Breaking News Australia | Sign up to Breaking News Australia |
| Get the most important news as it breaks | Get the most important news as it breaks |
| after newsletter promotion | after newsletter promotion |
| The RBA data paints a sombre picture of a growing number of people unable to clear their debts despite a robust jobs market and easing inflation. | The RBA data paints a sombre picture of a growing number of people unable to clear their debts despite a robust jobs market and easing inflation. |
| Most economists expect the central bank will cut the official cash rate on 18 February, offering some relief to mortgage holders. | Most economists expect the central bank will cut the official cash rate on 18 February, offering some relief to mortgage holders. |
Previous version
1
Next version