Credit card debt hits record $44 bn
AUSTRALIANS owe a record $44 billion on credit cards as spiralling living costs force them to put everyday expenses and even mortgage repayments on plastic.
Reserve Bank of Australia statistics reveal the national credit card debt has blown out by 3.5 per cent since December last year to more than $44.2 billion.
The $1.5 billion increase has alarmed experts, with figures showing the average credit card debt is more than $3200.
Consumer watchdog Choice said the typical family credit card debt was likely to be much higher, with many households juggling repayments on two or more cards.
The only positive news in the latest figures was that the debt crisis could have been worse. The average credit card balance is rising at its slowest rate in 13 years, evidence that higher interest rates have forced consumers to rein in spending.
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Typical credit card interest rates range from 19.49 per cent to 20.74 per cent, making the minimum repayment on the average debt at least $50 each month.
Choice spokesman Christopher Zinn said people were increasingly relying on credit cards to meet the cost of day-to-day living, with some consumers using them to make mortgage repayments.
“They’re one of the most expensive ways, short of pay-day lenders, to borrow money,” he said.
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