Aussie credit card debt: is it dropping or jumping?

Congratulations Australia, our collective credit card debt has dropped as a nation by over 8% in the last year. 

According to official statistics released by the RBA, Australians’ balances accruing interest in November 2019 came to a total of $27.20 billion, $2.45 billion less than in November 2018.  

Because of this reduction, it makes last November the lowest point for the country’s personal credit card debt since 2006, yep, that’s over a decade ago.   

But that’s not the full story…

When you look a little closer, the data also reveals that the number of personal credit card accounts has dropped by almost 6.5%, meaning that debt per credit card in 2019 remained relatively flat in comparison to 2018 with only a 1.96% drop. 

“This data indicates that fewer Australian consumers are opting to use credit cards, with many choosing alternatives like buy now pay later,” Mozo Banking Expert, Peter Marshall, said. 

“While credit debt has decreased, I’m not surprised plenty of people still reach for a credit card, whether it’s to collect reward points or just for the convenience they still offer.”

RELATED ARTICLE: Christmas credit card debt? Here’s a trick to help kick it! 

So are you one of the many Autalians still carrying credit card debt? There may be a way to clear your debt sooner than you think. 

What can I do to clear my credit card debt?

If you still have the shadow of credit card debt from last year looming over you, one option could be  taking advantage of one of the many balance transfer offers on the market at the moment. 

There are currently over 100 balance transfer credit cards in the Mozo database, with offers starting from three months all the way up to 26 months, many of which charge 0%. 

But how much could a balance transfer really save you, you ask? Take this scenario for example...

Say you have $6,000 debt on your current credit card with an interest rate of 20%. If you transferred your balance to a card with 0% for 12 months, you’d have to pay $500 every month to clear your debt before the interest-free period is over.  

However, if you stuck with your current credit card with a high interest rate, it would take you 14 months to pay down your debt, plus you’d end up paying $751 in interest. So it’d end up costing you in both time and money! 

To calculate how much you could save, check out our Switch & Save Calculator where you can punch in your details and find out how much you’d keep in your pocket by changing to a balance transfer credit card. 

RELATED ARTICLE: Clear your credit card debt in the new year with these balance transfer offers 

After some balance transfer card options? Take a look at the table below or jump over to our balance transfer credit card comparison tool for even more!

Balance Transfer Credit Cards 2020 - rates updated daily

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure.
Balance transfer calculator: how much money could you save?
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We've updated the table to show your savings!(how are they calculated?)
  • Apply By May 31, 2021
    Bendigo Bank Low Rate Credit Card

    0% p.a. balance transfer for 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 18 months and then 11.99% p.a. (2.00% balance transfer fee)
    11.99% p.a.
    $45
    -
    Details
  • Bankwest Breeze Mastercard

    Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)
    10.99% p.a.
    $49 $0 in the first year
    -
    Details
  • St.George Vertigo

    0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 24 months and then 21.49% p.a.
    13.99% p.a.
    $55 $0 in the first year
    -
    Details
  • Hot DealLimited time balance transfer offer
    Westpac Low Rate

    Enjoy 0% p.a. interest on balance transfers for the first 24 months. Get $200 cashback with $1k minimum spend on eligible purchases within 90 days of card approval. 55 interest free days and low on-going rate of 13.74% on all purchases.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 24 months and then 21.49% p.a. (1.00% balance transfer fee)
    13.74% p.a.
    $59
    -
    Details
  • St.George Amplify Platinum

    Get 0% p.a. for 22 months on balance transfers requested at card application. 1.5% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. Bonus 0% p.a. on purchases for 7 months. Rate then switches to applicable variable purchase rate. Get your first year annual card fee waived for the first year ($99 thereafter). New cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 22 months and then 21.49% p.a. (1.50% balance transfer fee)
    0% p.a. for 7 months then 19.74% p.a.
    $99 $0 in the first year
    Amplify Rewards
    Details

^See information about the Mozo Experts Choice Credit Cards Awards

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