Credit card purchases hit record high in August

Australians spent $27.43 billion on credit card purchases in August – the highest value on record. 

The latest RBA credit card statistics, released today for the month of August, show the total value of personal credit card purchases increased by $814.3 million, or 3.1 per cent, compared to the previous month, in seasonally adjusted terms. 

Households spent $1.23 billion more on credit card purchases, or 4.7 per cent, compared to a year ago. 

Total credit card purchases in August 2024 – personal cards

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.

Total value of credit card purchases – personal cards 

Source: RBA

Debt accruing interest drops

Australia’s total credit card bill dropped to $17.55 billion in August, according to today’s RBA statistics, in an encouraging sign households with credit card debt are starting to get back on top of it. 

While the total credit card bill from households dropped by a relatively minor $244.6 million, or 1.4 per cent, in August, in original terms, it is encouraging to see this figure move in the right direction, even as people reach for their cards more. 

The total number of personal credit card accounts has also dropped to 11.6 million in August, or -0.5 per cent – a drop of 60,083 cards in one month, in original terms. 

Note: the RBA has reported a series break in the June 2024 data, which impacted the number of personal credit card accounts and total personal credit card balances accruing interest. As a result, RateCity.com.au will not provide analysis for year-on-year changes on this data. 

RBA: credit card debt attracting interest charges - excludes commercial cards

Source: RBA, released 8 October 2024, original data, excludes commercial cards.

RateCity.com.au money editor, Laine Gordon, said: “Australians are reaching for their credit cards at record levels, spending a whopping $27.43 billion on credit card purchases in August.”

“While inflation is moving in the right direction and cash rate cuts are forecasted for next year, many families are doing it tough financially now and reaching for the credit card as a stop-gap,” she said. 

“It is encouraging to see the total credit card balance attracting interest drop by $244.6 million, or 1.4 per cent in August, and Australians close over 60,000 credit card accounts in one month. 

“However, at $17.55 billion, the total amount of debt attracting interest charges on personal credit cards across Australian households is still too high. 

“If you’re reaching for the credit card to help make ends meet, make a plan to pay it back within the interest free days. If you keep adding to your debt, it can make an already bad situation really ugly,” she said.

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