Aussie Credit Card Debt Soars to Record High Amid Unprecedented Spending Surge

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Australians put a record amount of money on their credit cards in November, sparking fears of a debt that could reach tens of billions of dollars.

Nearly $30 billion was put on credit cards during the month alone as Aussies looked to get ahead buying their Christmas presents, according to data from Canstar.

The data, taken from the Reserve Bank of Australia (RBA), reveals spending increased by more than three-quarters of a billion dollars compared to the month before, the largest increase since April 2023.

Australian money, in full-frame. Fifty, twenty, ten and five dollar notes. — Interest rate rises could make November’s big spending hit hard.(Dominic Lorrimer)

Recent data from Canstar reveals that Australians are paying an average interest rate of 18.52% on their credit cards, with some rates even surpassing the 20% mark.

Despite experts predicting Aussies may be spared an interest rate hike next month, it may rise again later in the year.

Despite these high rates, there are credit card options available with significantly lower interest rates, around nine percent.

Financial expert Tindall recommends that Australians consider switching to a card with a lower rate.

“Although the number of lenders offering rates below 10% is limited, these options are available and could be a feasible way to minimize financial strain while paying off debts,” she advised.

“In an era where every dollar is crucial, it doesn’t make sense to give away extra money to your credit card company,” she added.

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The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.