RBA’s Prediction For Credit Card Debt In Australia

Information verified correct on September 28th, 2016
reserve bank of australia

Credit card debt Australia is enjoying a stable increase, which is a very good sign for the Australian economy. Read this article to find out why.

While economic conditions are getting better, credit card debt Australia is rising along with the improvements. As the financial outlook improves, consumers are more willing to borrow money based on confidence in the economy.

Credit card debt Australia

Australians are willing to take on more debt, and while the crisis in global finance was a reminder to everyone that debt could indeed be a bad thing, the willingness to incur debt is a positive economic indicator.

The economy is driven by the spending strength of Australian consumers, and credit card debt Australia is an important indicator of how well the economy is doing. The fact that consumer borrowing is on the rise means that job creation should rise as well and unemployment should go down.

Recently, the Reserve Bank of Australia released the latest statistics of credit card debt Australia, and the news was good.

The total charge card and credit card balances that were outstanding went down to $46.152 billion at a decline of 1.6% in January. In December it was reported as being $46.912 billion. This is a normal fall since the Christmas spending that took place in December is over. Also, the figures are not adjusted seasonally.

The news is tentatively good since the average change was 1.8% for the last five Januaries. This means that this January followed a normal trend, which followed a better six-month period.

Retail sales in the last half of 2009 picked up after the period in which cash handouts that were given to households stalled retail spending earlier in the year.

Credit card debt Australia has picked up and in 2009 the total outstanding debt growth was 5%. While this is a slower rate than the last five years, which had a rate increase of 11%, it is still an increase that indicates a recovery. In the first half of 2009 the rate of growth was less than 2%.

This shows that consumer confidence is at a higher level and that, along with a strong growth in employment, it is giving consumer spending the momentum it needs. This does not mean to say, however, that households are simply plunging into deep debt. Australians are using their credit cards more cautiously. The growth in purchase value remains under the norm at only 4.4% in 2009, compared to an 8.5% average during the past five years.

There was also a fall of 12.8% in credit card cash advances last year, vs a 2.8% average increase in the previous five years.

It is a growth that bankers like to see – a stable gradual growth in household demand. The Reserve Bank would prefer to see this rather than a spending frenzy, since an investment boom in business is on the horizon in the near future.

As the credit figures stand now, the indicators are that interest rates rising another notch would not desperately hurt the household sector. If the rise in debt occurs too quickly then a rate rise would be urgently necessary.

Credit card debt Australia is maintaining a slow gradual growth, which is a good sign for the economic forecast. This solid rise in debt is a good indication of economic progress in the near future.

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Balance transfer credit cards

Do you have outstanding credit card debt? Have you considered a balance transfer? Compare a range of cards below to find out how you could save in interest.

Find out more about balance transfer credit cards

Rates last updated September 28th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Offers 0% p.a. interest rate on balance transfers for 18 months to help you manage your existing credit card balance with a reduced annual fee in the first year.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
Westpac 55 Day credit card
Enjoy a balance transfer offer of 0% p.a. for 16 months, an introductory purchase rate of 1% p.a. for up to 12 months, plus a waived annual fee for the first year if applied by 11 October 2016.
1% p.a. for 12 months (reverts to 19.84% p.a.) 0% p.a. for 16 months $0 p.a. annual fee for the first year ($30 p.a. thereafter) Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
Westpac Low Rate Card
A no frills credit card with an introductory rate of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases.
1% p.a. for 12 months (reverts to 13.49% p.a.) 0% p.a. for 18 months $59 p.a. Go to site More info
St.George Vertigo Platinum
A platinum card with a balance transfer offer of 0% p.a. for 20 months and an introductory purchase offer of 1% p.a. for 12 months with an annual fee waiver for the first year.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 2% balance transfer fee $59 p.a. Go to site More info
ANZ First Visa Credit Card - Exclusive Offer
Take advantage of this exclusive offer and enjoy 0% p.a. for the first 12 months on balance transfers and 0% p.a. for the first 3 months on purchases.
0% p.a. for 3 months (reverts to 19.74% p.a.) 0% p.a. for 12 months $30 p.a. Go to site More info
Virgin No Annual Fee Credit Card
Enjoy a long term balance transfer plus a $100 cashback offer (spend criteria applies) and never pay an annual fee for this card.
18.99% p.a. 0% p.a. for 18 months with 2% balance transfer fee $0 p.a. Go to site More info
NAB Low Fee Card
Enjoy a low introductory rate of 0% p.a. on balance transfers and purchases for 15 months.
0% p.a. for 15 months (reverts to 19.74% p.a.) 0% p.a. for 15 months with a one off 2% balance transfer fee $30 p.a. Go to site More info
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Credit Cards Comparison

Rates last updated September 28th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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