Australian Credit Card Debt Statistics & Figures — What You Need to Know

Australians are increasingly turning to credit cards as a way of accessing funds, with the number of credit cards held in Australia increasing from 33M in 2019 to 38M in 2022. This increase is likely due to the convenience and flexibility that credit cards provide, however, it can also lead to an accumulation of debt if not managed correctly.

Credit card debt is one of the most common forms of consumer debt faced by Australians today, with many people struggling under its weight due to high-interest rates charged on unpaid balances and lack of financial literacy when it comes to managing their finances effectively.

According to recent statistics released by ABS (Australian Bureau of Statistics), an average of individuals owe more than 56.8 thousand dollars in unsecured consumer debt across Australia – much of which is attributed directly or indirectly towards accumulated credit card debts.

In this article, we’ll explore some key facts regarding Australian Credit Card Debt Statistics & Figures so you can gain a better understanding about how widespread this problem really is, what kind of impact it has on individuals and households throughout Australia, and finally how you can work towards reducing your own personal level of credit card debt if necessary.

Australians Owe More Than $50 Billion In Credit Card Debt

Recent data from the ASIC shows that Australians owe a staggering total of $51.06 Billion in unsecured consumer credit debt, with over 3 million people having a minimum of one or more active accounts with an outstanding balance. This is an increase of 53% since 2015 and indicates that the trend of increasing credit card debt is not slowing down anytime soon.

The Average Australian Has Accumulated a Total of $2,801 In Credit Card Debt

The average Australian holds a total of $2,801 in outstanding credit card debt – a slight decrease in the past two years. This amount doesn’t take into account any additional debt accrued from other means such as personal loans, car loans or mortgages; it only looks at the amount of credit card debt incurred by an individual.

The Majority of People Who Hold Credit Cards Only Possess One

Approximately two-thirds (68%) of Australians with a credit card holder have only one, while another 24% have two. Only 8% of Aussies have three or more active accounts.

Interest Rates Can Vary from As Low As 8.99% to as High As 23.99%, Depending on The Card

The average interest rate charged for a credit card is 19.94% according to the Reserve Bank of Australia but it can vary significantly and is largely determined by factors such as your credit score, type of card and other financial circumstances. It’s important to take this into account when considering taking out a new card or transferring existing debt; as even a small difference in interest rate can have a huge impact on the total amount you end up paying back.

Conclusion

The Australian Credit Card Debt Statistics & Figures show that credit card debt is a growing problem in Australia. It’s important to be aware of the facts and figures associated with credit card debt so you can make informed decisions on how best to manage your own finances. With the right knowledge, tools and resources, it is possible to reduce or eliminate your credit card debt, and take control of your financial future.

Remember to always discuss any financial decisions with a professional before taking out or transferring credit card debt, and make sure you understand the full terms and conditions associated with any new cards or loans that you may be considering.