Right time to pay off cards
(25 August 2009 – Australia) According to Australian consumers, now is the right time to pay off credit cards, with RBA data revealing credit card balances reaching low levels in June 2009.
Analysis by the Australian Bankers’ Association (ABA) of Reserve Bank of Australia (RBA) credit card data showed that customers are paying down debt and are managing their credit cards in the current economic environment.
The RBA data showed growth rates for balances outstanding, amounts accruing interest and credit card limits are all at low levels for the 12 months to the end of June 2009.
The ABA also found that, for the first time, the amount of the credit card balance which is accruing interest has fallen over a one-year period. In fact, over the year to the end of June 2009, the amount accruing interest was almost one percent less than for the previous year.
The ABA’s chief executive, David Bell, said that over the past three months, the amount accruing interest has fallen by $1 billion or three percent. On a per card basis, it’s a fall of $83 or 3.7 percent for every credit card account over that time, Bell added.
Other signs that consumers are managing their credit card spending relates to their repayment activity, the ABA said.
The RBA data shows that over the past year, consumers have repaid $4.9 billion more than they have spent, which is a record amount. This continues a long period of more than four years where consumers have been ahead in their repayment activity on an annual basis.
The RBA data showed growth rates for balances outstanding, amounts accruing interest and credit card limits are all at low levels for the 12 months to the end of June 2009.
The ABA also found that, for the first time, the amount of the credit card balance which is accruing interest has fallen over a one-year period. In fact, over the year to the end of June 2009, the amount accruing interest was almost one percent less than for the previous year.
The ABA’s chief executive, David Bell, said that over the past three months, the amount accruing interest has fallen by $1 billion or three percent. On a per card basis, it’s a fall of $83 or 3.7 percent for every credit card account over that time, Bell added.
Other signs that consumers are managing their credit card spending relates to their repayment activity, the ABA said.
The RBA data shows that over the past year, consumers have repaid $4.9 billion more than they have spent, which is a record amount. This continues a long period of more than four years where consumers have been ahead in their repayment activity on an annual basis.
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