Credit card debt soars despite weak Christmas

Wednesday 22 April 2009

Article by Mozo

Total personal credit card debt in Australia grew 1.7 per cent in February, the latest figures from the Reserve Bank of Australia (RBA) show.

The bank reports that the number of people paying off their credit card debts shrank significantly during the month, with total repayments tumbling 7.1 per cent.

And while the RBA figures often show a rise in credit card debt in the wake of Christmas spending, sales figures show that these stats have very little to do with a seasonal debt hangover.

"It is a concern, as you are starting to see credit card spending falling away but balances still rising," commented economics expert Savanth Sebastian, speaking to the Daily Telegraph.

This is not the only grim news brought by the RBA this week, as governor Glenn Stevens has also warned that recession is a certainty for Australia.

The RBA and premier Kevin Rudd had previously refused to concede that the country would be dragged down by the global economic quicksand.ADNFCR-1761-ID-19133788-ADNFCR

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