RBA: Credit card repayments outstripping transactions

Thursday 22 October 2009

Article by Mozo

Aussies have been paying back more money on their credit cards than they have been spending, according to the Reserve Bank of Australia (RBA).

In an annual report on the repayments system tabled in parliament this week, the RBA noted an increase in the amount people are repaying.

The institution said: "Credit card repayments have typically exceeded credit card transactions since the end of last year, sometimes by large amounts."

In addition, there was an increase in debit card usage and cash withdrawals compared to credit card spending.

Credit card transactions increased by 3.8 per cent over the year. However, debit cards saw a 14.7 per cent rise.

According to the bank, this represents a cautious approach to debt on the part of consumers.

This comes as the RBA recently released credit and debit card figures for August, which demonstrated a shift towards the latter, with a 1.5 per cent dip in the value of purchases on the former payment option.

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