Aussies getting on top of their credit card balances
While Money Smart statistics show that Australians owe a combined total of $33 billion on credit cards, the latest findings from the Reserve Bank of Australia indicate that credit card balances are down.
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Over April credit and charge card spending dropped significantly by $2.8 billion to $23.6 billion, compared with the previous month. This brings the average account balance down to $3,192 from $3,214 in March. Additionally, account balances accruing interest have fallen 4.6% from $2,190 in April last year to $2,090.
While Australians are being financially savvy when it comes to their credit cards and getting on top of their balances, they are also swiping more with the stats showing spending in April was 6.8% higher than the same time last year.
Australians are also increasing their credit card limits, with the average credit card limit jumping up by 0.2% from $9012 to $9030, over the 12 months to April.
Here are Money Smart’s tips for paying off your credit card balance sooner:
1. Stop adding more debt to your credit card
2. Pay more than the minimum repayment - even an extra $50 per month will make a big difference
3. Set up a direct debit to pay a fixed amount off your credit card balance each payday
4. If you have more than one card, pay off the one with the highest interest rate first or tackle the one with the smallest debt first
Credit card comparisons on Mozo - page last updated September 28, 2020
CUA Low Rate Credit Card
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Bankwest Zero Platinum Mastercard
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Westpac Low Rate
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CUA Platinum Credit Card
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