Aussies Getting Better At Managing Credit Cards

Australians are becoming smarter with their credit card management while spending more money than ever shown by the latest figures from the Central Bank.

In May this year our spending has racked up a total of $17.77 billion on our credit cards and charge cards. This figure indicates a spending increase of 2.3 per cent over the month of April.

Cash advance charges force smarter credit card management for consumers

The increase in our spending habits has partially been attributed by The Mercury as a direct result from getting our Federal Government stimulus packet handouts. But while Australian consumers don’t seem to be afraid to spend their surplus cash, they certainly have become a lot more aware of the rising cash advance interest rates charged by our banks. It forces many families to be more financially vary and pay more attention to use smart credit card management.

CommSec economist Savanth Sebastian said that cash advances in the country were down by 20 per cent this year from the year previous. According to Mr. Sebastian this is by far the biggest decline seen in any year since the late 1980s.

He further stated: “The global economy continues to show signs of stabilising yet consumers continue to embrace the new era of consumer conservatism.”

Another sign that indicates how much more aware we have become in our credit card management is the declining outstanding credit card balance each month. While the average outstanding balance for April and May 2008 stood higher than $3100, they have certainly declined as shown by May’s figures this year with $3093,79.

Source: News.com.au

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%