Credit card spending reaches new high

Thursday 21 January 2010

Article by Mozo

Credit card spending soared in November last year as confidence returned among Aussie shoppers.

New Reserve Bank of Australia (RBA) figures show that consumers spent $20.004 billion on credit and charge cards in the month, up from $19.189 billion in October.

According to the RBA, this was the highest monthly spending since December 2008.

Savanth Sebastian, a researcher at the market analyst Commsec, told the Australian: "The improvement in economic conditions and the sharp rise in consumer sentiment is starting to filter through to credit card usage."

He added that the improvement in labour market conditions and rising wealth appeared to be giving consumers more confidence to use their credit cards.

The figures also revealed that the average credit card account balance was $3,196 in November, up by 1.8 per cent from $3,141 in October.

Australian credit card holders should be aware of a scam reported this week involving modified payment terminals that has resulted in the theft of $50 million from more than 100 accounts in New South Wales alone.

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