Australians Spent $21billion On Their Credit Cards In December 2009
Posted February 24th, 2010
In December, Australians pulled out their plastic to spend a record $21 billion, but the good news is that they are paying off their cards faster than they were before, avoiding high credit card debt.
Compared to last year, this is a 5.6% increase which is even stronger than the 2.1% rise in retail sales.
Australians were more able to pay off their credit cards last year due to the $10.4 billion cash handout from the government.
Australian consumers are also being cautious about their credit card debt and MasterCard is showing that of the $46.9 billion of credit card debt, only 70.8% is accruing interest. This is the lowest level within a year.
Cash advances are declining and in December there was a 13% drop when compared to a year earlier. Also falling is the rise in credit card limits since 2007, since they only rose about 3.5% last year. During the last five years there was a 12% rise in credit card limits.
In 2009, there was a 2.5% increase over the year 2008 for credit card transactions.
Consumer confidence has gotten stronger during the last six months, but there were weaker Christmas sales due to the three different rises in interest rates last year. Economists are expecting that the recovery in the housing construction and higher employment will improve spending by consumers for the rest of this year.
Source: The Australian
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Comparison of our Top Credit Card Offers
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
Bankwest Breeze MasterCard | A low interest rate on everyday purchases with a low balance transfer offer | 0% for 6 months (reverts to 10.99% ) | 4.99% for 9 months | $49 | 21.99% |   |
Citibank Clear Platinum Card | A low interest rate offer on balance transfers and purchases | 11.99% | 0% for 12 months with 3% handling fee | $99 | 21.74% | |
St.George Vertigo | An introductory offer on balance transfer and a low annual fee | 13.24% | 0.99% for 6 months | $55 | 21.49% | |
Virgin Flyer Credit Card | Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers | 20.99% | 1.9% for 12 months | $50 (for first year thereafter $99) | 20.99% | |
Westpac 55 Day Credit Card | No annul fee for the first year with a low rate on balance transfers and purchases | 0% for 5 months (reverts to 19.59% ) | 3.99% for 6 months | $0 annual fee for the first year ($30 thereafter) | 21.49% | |
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