Consumers pay down credit card debt

Sydney, 21 August, 2009: Analysis by the Australian Bankers’ Association (ABA) of Reserve Bank of Australia (RBA) credit card data demonstrates customers are paying down debt and are sensibly managing their credit cards in the current economic environment.

The RBA data shows growth rates for balances outstanding, amounts accruing interest and credit card limits are at very low levels for the 12 months to the end of June 2009.
 
Also, for the first time, the amount of the credit card balance which is accruing interest has fallen over a one-year period.  That is, over the year to the end of June 2009, the amount accruing interest was almost 1% less than for the previous year.
 
David Bell, Chief Executive of the ABA, said: “While this result stands out, if we look at the past three months, the amount accruing interest has fallen by a very large $1 billion or 3%.  On a per card basis, it’s a fall of $83 or 3.7% for every credit card account over that time.”
 
Other signs that consumers are managing their credit card spending relates to their repayment activity.
 
The RBA data shows that over the past year, consumers have repaid $4.9 billion more than they have spent – a record amount.  This continues a long period of more than four years where consumers have been ahead in their repayment activity on an annual basis.

For further information:

Heather Wellard
ABA Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
           
ENDS