Australians are paying down credit card debt
It seems that Aussies are getting more sensible with their money as they strive to pay down credit card debt – despite the fact that money is tight and disposable income is taking a hit.
According to new figures from the Reserve Bank of Australia (RBA), credit card debt was a growing problem until 2006. Up until that date, unpaid credit card debts increased by between ten and 20 per cent each year.
However, 2006 appeared to be a turning point when many Aussies started to clear their debt backlog by boosting their payments.
Meanwhile, figures from the Australia Bureau of Statistics have shown that the actual appetite for debt – including credit card spending – dropped off further in June, with the total value of personal finance in Australia shrinking by 0.2 per cent.
This drop counterbalances a small rise in lending in May of this year.
Conversely, during June 2012, the value of home loans rose by 0.2 per cent to reach $834 billion.