Credit card repayment 'makes complete sense'
Figures from the Reserve Bank of Australia showing that credit card repayments shot up in December indicate that Australian consumers are taking a sensible approach to paying off their debt, the West Australian’s economics chief has surmised.
In an in-depth analysis of the Australian Bureau of Statistics (ABS) figures, Shane Wright points out that the record credit card debt payments are an obvious choice when lenders are proving reluctant to follow through on interest rate cuts from the Reserve Bank of Australia and start offering cheap credit card rates.
However, he also pointed out that while a record amount went on paying credit card debts, the amount of money spent on plastic also shot up by 20 per cent on the previous month.
"Just like some people can walk and chew gum at the same time, Australians can obviously spend and save simultaneously," he suggested.
Figures from the ABS also showed that people had stashed record amounts of cash into savings accounts and other investment vehicles in December, leading many to suggest that Australian’s had not heeded Kevin Rudd’s call to go and spend the money for the good of the country.