Credit Card Debt Reach Record Numbers
Australia, April 20 – Credit card debts are at their highest ever reaching a total of $45.5 billion. Bad news for the banks: Australians are making less repayments.
The continuous rise of unemployment and the recession has dramatically cut back credit card repayment since February by around 7.1 percent. Credit card debt, on the other hand, has grown by 1.7 percent, averaging to $3149 debt per cardholder.
Although data from the Reserve Bank shows the growth rate of credit card debt is slowing, the gap between spending and repayments is alarming. “We’ve had two months now when consumers have pulled back on making repayments,” says CommSec economist Savant Sebastian.
Data from the Reserve Bank does show a positive trend. Consumers are veering away from cash advances, which has immediate interest. Cash advances are down by 1.8 percent, falling for 21 consecutive months.
The total consumer spending in February with the use of credit cards is $17.1 billion.
Source:
news.com.au
