Government urges Aussies to slash credit card debt

Tuesday 06 March 2012

Article by Mozo

A government body has urged Aussies to take measures to trim their credit card debt, after figures showed that the country now owes $36 billion on plastic.

The Australian Securities and Investments Commission is concerned that too many people are racking up debts that they will find difficult to repay due to the high levels of interest.

Manager of MoneySmart – the government organisation's official website – Delia Rickard said the average credit card holder now owes $4,757.

It seems that many Aussies are being lured into attractive packages by banks and lenders who are offering low interest rates over a short period.

Leader at consumer group Choice Matt Levey told the Herald Sun that people are being "bombarded" with credit card deals and many banks are upselling certain packages to existing customers.

"We're encouraging people to make paying off their credit card a priority and certainly to pay more than the minimum," Ms Rickard added.

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Government urges Aussies to slash credit card debt

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