{"id":185986,"date":"2024-10-09T15:30:31","date_gmt":"2024-10-09T04:30:31","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=185986"},"modified":"2024-10-09T09:07:04","modified_gmt":"2024-10-08T22:07:04","slug":"record-credit-card-spending-in-august-as-aussies-tackle-rising-costs","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/record-credit-card-spending-in-august-as-aussies-tackle-rising-costs\/","title":{"rendered":"Record Credit Card Spending in August as Aussies Tackle Rising Costs"},"content":{"rendered":"

In a reflection of the ongoing financial strain on households, Australians spent a record $27.43 billion on personal credit card purchases in August 2024, according to the latest data from the Reserve Bank of Australia (RBA).<\/p>\n

\"Total<\/p>\n

This represents an increase of $814.3 million (3.1%) compared to the previous month and a staggering $1.23 billion (4.7%) more than in August 2023.<\/p>\n

Total credit card purchases in August 2024 \u2013 personal cards<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n
<\/td>\nAmount<\/strong><\/td>\nMonthly change<\/strong><\/td>\nYear-on-year change<\/strong><\/td>\n<\/tr>\n
Value of credit card transactions<\/td>\n$27.43 billion<\/p>\n

Record high<\/td>\n

+$814.3 million<\/td>\n+$1.23 billion<\/td>\n<\/tr>\n
+3.1%<\/td>\n+4.7%<\/td>\n<\/tr>\n
Number of credit card purchases<\/td>\n296.1 million<\/td>\n+10.1 million<\/td>\n+11.3 million<\/td>\n<\/tr>\n
+3.5%<\/td>\n+4.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: RBA, released 8 October 2024, seasonally adjusted data, excludes commercial cards. Monthly change is July 2024 to August 2024, year-on-year change is August 2023 to August 2024.<\/em><\/p>\n

Credit cards filling the gap amid financial pressure<\/span><\/h2>\n

As inflation remains a pressing issue, many Australians are turning to credit cards to make ends meet.<\/p>\n

With cost-of-living pressures still biting, the number of credit card purchases surged by 3.5% month-on-month, reaching 296.1 million transactions in August.<\/p>\n

This suggests that while wages have struggled to keep pace with rising prices, credit cards are being increasingly used as a financial lifeline.<\/p>\n

Laine Gordon, RateCity\u2019s money editor, noted:<\/p>\n

\u201cAustralians are reaching for their credit cards at record levels.<\/p>\n

While inflation is starting to ease and interest rate cuts are on the horizon for next year, many families are struggling financially right now and using credit cards as a stop-gap solution.\u201d<\/p><\/blockquote>\n

Debt is on the decline, but risks remain<\/span><\/h2>\n

In a positive sign, the total amount of debt accruing interest dropped to $17.55 billion in August\u2014a decrease of $244.6 million (1.4%) from the previous month.<\/p>\n

RBA: credit card debt attracting interest charges<\/strong> - excludes commercial cards<\/span>\u00a0<\/strong><\/p>\n\n\n\n\n\n
\u00a0<\/strong><\/td>\nAmount<\/strong><\/td>\nMonthly change<\/strong><\/td>\nYear-on-year change<\/strong><\/td>\n<\/tr>\n
Debt attracting interest charges<\/p>\n

(personal credit cards)<\/td>\n

$17.55 billion<\/td>\n-$244.6 million
\n-1.4%<\/td>\n		n\/a<\/td>\n<\/tr>\n
Number of personal credit card accounts<\/td>\n11.6 million<\/td>\n-60,083
\n-0.5%<\/td>\n		n\/a<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: RBA, released 8 October 2024, original data, excludes commercial cards.\u00a0<\/em><\/p>\n

Additionally, Australians closed over 60,000 personal credit card accounts in August, signalling some effort to regain control over household finances.<\/p>\n

However, despite these improvements, the $17.55 billion in debt that is still accruing interest remains a concern.<\/p>\n

Gordon said:<\/p>\n

\u201cWhile it\u2019s encouraging to see the total balance attracting interest drop, it\u2019s clear that many Australians are still carrying a heavy debt load.<\/p>\n

For those turning to credit cards, it\u2019s crucial to make a plan to pay off the debt within the interest-free period.<\/p>\n

Otherwise, the situation can quickly spiral into an even deeper financial struggle.\u201d<\/p><\/blockquote>\n

Looking ahead<\/span><\/h2>\n

With inflation gradually cooling and talk of potential rate cuts next year, there is some light at the end of the tunnel for Australians facing financial challenges.<\/p>\n

However, it\u2019s clear that credit cards are playing a critical role in bridging the gap for many families in the meantime.<\/p>\n

Now more than ever, it\u2019s essential for those relying on credit to be mindful of the potential long-term costs and take proactive steps to manage their debt effectively.<\/p>\n\r\n\r\n\r\n

<\/div>\r\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

In a reflection of the ongoing financial strain on households, Australians spent a record $27.43 billion on personal credit card purchases in August 2024, according to the latest data from the Reserve Bank of Australia (RBA). This represents an increase of $814.3 million (3.1%) compared to the previous month and a staggering $1.23 billion (4.7%)…<\/p>\n","protected":false},"author":140,"featured_media":177328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[54,653],"tags":[],"class_list":["post-185986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-property-updates","category-personal-finance"],"acf":[],"yoast_head":"\nRecord Credit Card Spending in August as Aussies Tackle Rising Costs<\/title>\n<meta name=\"description\" content=\"In a reflection of the ongoing financial strain on households, Australians spent a record $27.43 billion on personal credit card purchases in August 2024,...\" \/>\n<meta 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