Aussies‘ Credit Card Debt Surges,โ Averageโค Balance Hits $1,674 as Experts Issue Warning
Sydney, Australia – Millions of Australians are facing a growing credit cardโฃ debt burden, with balances accruing interest reaching $20.5 billion โ-โข a 7.3 per cent increase year-on-year – as new data reveals a worryingโ trend of increased spending and reliance on credit. The average โขcardholder 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. Thisโ escalating trend, coupled with a 0.6 per cent rise in active credit card accounts to 12.2 million nationwide, is raising “alarm bells” โขahead of the Christmas โshopping season. Consumer analyticsโ firm Equifax reported a 14.4 per cent โขyear-on-year surge in credit card applications โin October, indicating continued demand for credit.
Financial expert โMegginson cautioned that Australia’sโค collectiveโฃ credit card bill could reach โคnew highs with Christmas approaching. “It’s better to face โfacts now andโ rein in spending โคthen beโ 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 โfurther interest. She also encouraged australians to review thier spending habits and โmaximize rewards programs if they consistently pay their balances in full โeach month.