Aussies‘ Credit Card Debt Surges, Average Balance Hits $1,674 as Experts Issue Warning
Sydney, Australia – Millions of Australians are facing a growing credit card debt burden, with balances accruing interest reaching $20.5 billion - a 7.3 per cent increase year-on-year – as new data reveals a worrying trend of increased spending and reliance on credit. The average cardholder now owes $1,674 on balances attracting interest, sparking concern among financial experts.
The surge in debt comes as Australians made 324 million credit card transactions in the past month, averaging $3,194 per card, representing a 10.2 per cent increase over the past year. This escalating trend, coupled with a 0.6 per cent rise in active credit card accounts to 12.2 million nationwide, is raising “alarm bells” ahead of the Christmas shopping season. Consumer analytics firm Equifax reported a 14.4 per cent year-on-year surge in credit card applications in October, indicating continued demand for credit.
Financial expert Megginson cautioned that Australia’s collective credit card bill could reach new highs with Christmas approaching. “It’s better to face facts now and rein in spending then be stuck paying the price well into 2026,” she said.
Megginson advised those struggling with repayments to consider balance transfer offers with 0 per cent interest for a limited period, typically 12 to 24 months, to work down debt without accruing further interest. She also encouraged australians to review thier spending habits and maximize rewards programs if they consistently pay their balances in full each month.
