Australian credit cards climb to unprecedented debt levels of $45.4 billion

Wednesday April 29, 2009

Australian credit cards users have reduced their credit card repayments, including online credit cards repayments, to 7.1 percent with many people restricting any form of spending or repayments with unemployment on the rise and the recession threatening.

For the month of February, Australians spent $17.1 billion on their credit cards, higher than figures in January, although below the average amount spent monthly in 2008.

Australian credit cards debt has grown by 1.7 percent to $45.4 billion, equating to $3149 per credit card holder in Australia.

Economists have expressed concern, not so much on the figures themselves but on the widening gap between credit cards repayments and spending. In fact, the credit card debt rate is actually slowing.

The reduction in the numbers of cash advances on credit cards has reduced which economists have applauded as these transactions attract a high interest rate, making credit cards repayments increasing difficult.

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