Australia’s debt on credit cards has risen to record levels this year. However, the amount of repayments aimed at reducing credit card debt has drastically fallen.
While facing rising unemployment and a looming recession, Australians cut back on their credit card repayments by 7.1% in February. Australian credit card debt grew by 1.7% to a record $45.4 billion, equating to an average debt of $3,149 for every cardholder in the country.
Rising Credit Card Debt
While the latest Reserve Bank data shows that the growth rate of credit card debt is actually slowing, the expanding gap between spending and repayments is a frightening reality of recessionary periods, CommSec economist Savanth Sebastian said. This is concerning as we are now seeing credit card spending declining, however the balances owing are still rising due to the interest charges.
It is time that people take control of their finances, rather than letting their credit cards control them. Consolidating debts, balance transfers and repaying cash advances are among the best ways to manage credit card debt.
Receive help with your credit card debt today, and stop the interest from rising. Call the Australian Lending Centre on 1300 138 188 and speak with one of our friendly consultants.