Credit card debt hits lowest level since 2004

Australians have wiped a total of $6.3 billion of debt accruing interest from their credit cards since COVID, according to new RBA figures released this week.

This is the lowest level of credit card debt accruing interest since December 2004.

“Providers know the glory days are over for credit cards. They’re frantically trying to create new options to challenge the buy now, pay later industry, but it could be too little too late."


Sally Tindall
Research Director
ratecity.com.au

By the numbers


The number of credit cards during the 2020 WFH pandemic fell by over 500,000 in Australia.

-583,869

Total drop

August 2020

13,057,684

13,641,553

March 2020

By the numbers


It's not just credit card numbers that fell, but also the amount owing, dropping by billions.

- $6.3 billion

Total drop

August 2020

$20.6 billion

$27.0 billion

March 2020

“Using tax cuts to clear credit card debt might not be what the Treasurer had in mind,
but for some families, the freedom that comes with being debt free will be worth it."


Sally Tindall
Research Director
ratecity.com.au

Keen to kill your credit card debt?

if your outstanding balance is getting in the way of ending credit card debt, consider if a balance transfer card may suit your financial needs.

Just note that any new purchases made will immediately begin to accrue interest, so you may want to lock your new card up somewhere so you won't be tempted to use it.

For more
check out
ratecity.com.au

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