Stubborn credit card debt stuck at $ 20 billion

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Australia’s credit card debt has now hovered around $ 20 billion for the eleventh consecutive month.

The latest RBA data for personal credit card accounts shows a slight 0.3% month-over-month decline in June, bringing total interest-bearing credit card debt to $ 20.01 billion. dollars, in terms of origin.

Note that this data excludes commercial credit cards.

Source: RBA, June 2021 data, published August 9, 2021, original data, excluding commercial cards.

While credit card debt has remained relatively stable for 11 consecutive months, the number of credit card accounts has declined by 751,916 over the past year, to its lowest number since February 2007. However, the rate at which people close their accounts has slowed. , compared to a year ago.

Credit Card Statistics: Personal Credit Cards in June

Rising Monthly change Change from year to year
Number of personal accounts

12.52 million
lowest since February 2007

-29,171
-0.2%

-751.916
-5.7%

Interest-bearing balances

$ 20.01 billion

– $ 52.0 million
-0.3%

-2.78 billion dollars
-12.2%

Value of transactions

$ 22.05 billion

– $ 197.4 million
-0.9%

$ 1.53 billion
7.4%

Source: RBA, published August 9, 2021, original data, excluding commercial cards. The monthly variation is from May to June 2021, the variation from one year to another is from June 2020 to June 2021.

RateCity.com.au Research Director Sally Tindall said: “Millions of Australians seem to be stuck in a rut of credit card debt. “

“The debt accumulating interest has hovered around $ 20 billion for almost a year,” she said.

“However, the debt accumulating interest could increase next month if households affected by the foreclosure applied for the credit card to help pay the bills.”

In June, Melbourne was locked up for a week, while Sydney’s restrictions began on June 26. Data for July, due by the RBA next month, will be a better indication of how Australians are using their credit cards during the lockdown, with several states affected this month.

“If you’re having trouble paying your bills, pick up the phone and ask for help instead of looking for the credit card,” she said.

“Putting your bills on the credit card or taking out a payday loan could make a bad situation worse.

“There are government support programs, loan deferrals, bank rate cuts and fee waivers, Centrelink crisis payments and essential service provider hardship programs,” she said. declared.

Anyone struggling with debt can call the National Debt Helpline for free financial advice.

National Debt Helpline: 1800 007 007

June accounts rba data.JPG


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