Australia’s credit card bill is getting bigger, with a new record of $52.22 billion as at June 2016, according to the latest Reserve Bank data analysed by creditcardfinder.com.au.
This comes as no surprise, as research commissioned by creditcardfinder.com.au, surveying 1,078 Australians in April-May 2016, found that Australia’s credit card habits have worsened.
It revealed eight in 10 (79%) credit cardholders make unplanned purchases each month, averaging 4.11 purchases per month. Alarmingly, almost one in four (23%) don’t pay off their balance in full each month. There are over 16.5 million credit cards in circulation in Australia, according to Reserve Bank data, which means there are an estimated 3.8 million cards paying unnecessary interest.
State by state
Cardholders in New South Wales (NSW) are the biggest impulsive spenders, making on average 3.6 unplanned purchases on their credit card each month. It was followed by those in Queensland (QLD) with 3.4 unplanned purchases on average per month, then Victorians (VIC) with 3.3. South Australia (SA) and Western Australia (WA) had the most responsible credit card spenders, making 2.8 unplanned purchases on average per month.