Credit card limits rose 1.5 per cent over last 12 months

By Mozo ·

Credit card customers in Australia saw the average limit on their plastic rise by 1.5 per cent over the last 12 months, new figures have revealed.

Aussies enjoyed higher limits on their cards, but the average balance fell to $3,292.60, a drop of $10.30, reports news.com.au.

While there was an increase, it was still below the rate of inflation and was the slowest growth on record.

This may suggest that many Aussies are being more cautious about borrowing and are taking greater pains to pay off some of the debt on their credit cards.

In September, the number of credit card accounts in Australia fell for the first time in 17 years.

However, spending may increase in the coming months in light of a resurgence in consumer confidence following the Reserve Bank of Australia's recent rate cut.

According to the Westpac-Melbourne Institute Index of Consumer Sentiment, there was a 6.3 per cent increase in November compared with October.

Have a question about credit cards? Ask the money gurus at Mozo AnswersADNFCR-1761-ID-801211889-ADNFCR