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 4 October 2021
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    Kogan Money Black Card

    Kogan Money Black Card has no annual fee and no cap or expiry date on points. It comes with a 55 interest free days on purchases and a 0% balance transfer rate for the first 12 months. Earn up to $400 in Kogan.com Credit, $50 Credit on first eligible spend in 30 days and $350 Credit when you spend $1,500 on eligible purchases in 90 days from card approval.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 12 months and then 21.74% p.a.
    20.99% p.a.
    $0
    Kogan Rewards Points
    Go to site
    Details
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    Great Southern Bank Low Rate Credit Card

    0% balance transfer rate for 20 months and up to 55 interest free days. No annual fee for the first year and $49 after. Mozo Experts Choice Balance Transfer Platinum Credit Card Winner 2020^

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 25 months and then 21.74% p.a.
    11.99% p.a.
    $49 $0 in the first year
    -
    Go to site
    Details
  • Apply By 31 October 2021
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    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for up to 12 months. 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 12 months and then 11.99% p.a. (2.00% balance transfer fee)
    0% p.a. for 12 months then 11.99% p.a.
    $45
    -
    Go to site
    Details
  • Apply By 28 October 2021
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    PayPal Rewards Card

    Enjoy 50,000 bonus points (conditions apply). Receive 55 interest free days on purchases and 0% balance transfer rate for the first 20 months.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 20 months and then 20.99% p.a.
    20.99% p.a.
    $0
    PayPal Rewards
    Go to site
    Details
  • Featured Product
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    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    Balance transfer rate
    Purchase rate
    Annual fee
    Rewards program
    Estimated savings
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    13.74% p.a.
    $59 $0 in the first year
    -
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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