Australians endure higher debt

Australians endure higher debt

18 July 2011 by Staff Reporter 0 comments

Staff Reporter

Total credit card debt has grown by more than four per cent, new data from the Australian Bureau of Statistics has revealed.

Despite the slowdown in the number of new credit card accounts being opened, ABS data showed total debt grew 4.11 per cent in the 12 months to May 2011.

But RateCity’s chief executive Damian Smith said what’s more concerning than the total debt, is the bigger jump in the amount of credit card debt accruing interest.

“We’ve found that credit card balances costing card holders interest increased by almost six per cent in May 2011, compared to May 2010 – that’s almost $2 billion more than in May 2010,” he said.

“In May 2011, credit card balances racking up interest were $36.8 billion, which makes up about three-quarters (74.52 percent) of the total credit card debt of $49.4 billion.

“What this means is card holders are not only being charged higher interest rates than last year but they are also paying more in interest from bigger debts.”

With higher costs of living starting to place greater pressure on households, Mr Smith said credit card holders should use the next few months to get back on track with their debts.

Staff Reporter

Total credit card debt has grown by more than four per cent, new data from the Australian Bureau of Statistics has revealed.

Despite the slowdown in the number of new credit card accounts being opened, ABS data showed total debt grew 4.11 per cent in the 12 months to May 2011.

But RateCity’s chief executive Damian Smith said what’s more concerning than the total debt, is the bigger jump in the amount of credit card debt accruing interest.

“We’ve found that credit card balances costing card holders interest increased by almost six per cent in May 2011, compared to May 2010 – that’s almost $2 billion more than in May 2010,” he said.

“In May 2011, credit card balances racking up interest were $36.8 billion, which makes up about three-quarters (74.52 percent) of the total credit card debt of $49.4 billion.

“What this means is card holders are not only being charged higher interest rates than last year but they are also paying more in interest from bigger debts.”

With higher costs of living starting to place greater pressure on households, Mr Smith said credit card holders should use the next few months to get back on track with their debts.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

Get up close and personal with the best real estate sales agents in Australia in Secrets of the Top 100 Agents. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?