Credit card debt is falling
(22 September 2009 – Australia) The latest RBA credit card statistics have shown that balances outstanding on credit cards have continued the fall which started in April this year.
The RBA credit and charge card statistics for July 2009 show a 0.57 percent fall over the past year in the average credit card balance, which now sits at just over $3,100.
This is the fourth consecutive month that has experienced a year-on-year decrease in the average balance outstanding on credit cards, with a clear trend now developing.
The total credit card balances outstanding for all 14.35 million accounts in total now sit at A$44.57 billion.
In even more positive news for consumers, the balance outstanding on credit cards that is actually accruing interest has fallen by an even greater amount; 2.2 percent over the past year.
Credit card customers now hold a still substantial $2206 in balances accruing interest, around $50 per account less than in July 2008.
In the five previous financial years that the RBA has been keeping records on balances accruing interest, only in the past three months have balances come down.
While the value of transactions continues to rise, repayments have risen by an even greater amount over the past year, helping customers reduce their interest payments in the current tough economic environment.
This is the fourth consecutive month that has experienced a year-on-year decrease in the average balance outstanding on credit cards, with a clear trend now developing.
The total credit card balances outstanding for all 14.35 million accounts in total now sit at A$44.57 billion.
In even more positive news for consumers, the balance outstanding on credit cards that is actually accruing interest has fallen by an even greater amount; 2.2 percent over the past year.
Credit card customers now hold a still substantial $2206 in balances accruing interest, around $50 per account less than in July 2008.
In the five previous financial years that the RBA has been keeping records on balances accruing interest, only in the past three months have balances come down.
While the value of transactions continues to rise, repayments have risen by an even greater amount over the past year, helping customers reduce their interest payments in the current tough economic environment.
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