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Turning to the plastic – credit card use at its highest since 2021
RBA credit card data has revealed Australians are turning to the plastic at levels not seen since August 2021, with total credit card debt accruing interest hitting $17.76 billion in April.
Debt accruing interest is up $27 million from March, and 2.5 per cent higher than April 2022.
Credit card statistics: personal credit cards in April 2023
| Amount | Monthly change | Year-on-year change | |
| Debt accruing interest | $17.76 billion
Highest since Aug 2021 | $27 million
+0.2% | $436 million
+2.5% |
| Number of accounts | 12.55 million | 9,237
+0.1% | 170,104
+1.4% |
Source: RBA, released 7 June 2023, original data, excludes commercial cards. Monthly change is Mar 2023 to Apr 2023, year-on-year change is Apr 2022 to Apr 2023.
Source: RBA. Note: graph begins at $15 billion.
Value of spending increases, but total number of transactions decline
The value of transactions increased in April, with over $73 billion spent across both credit and debit cards - a 0.6 per cent increase since March, and a 10 percent rise compared to the same time a year ago.
However the total number of transactions is 9 per cent lower compared to April 2022.
Total value of transactions: credit and debit cards in April 2023
| Amount | Monthly change | Year-on-year change | |
| Value of credit card transactions (personal cards only) | $26.34 billion | +$276 million +1.1% | +$2.06 billion +9% |
| Value of debit card transactions | $46.99 billion | +$135 million +0.3% | +$4.42 billion +10% |
| Total | $73.33 billion | +$411 million +0.6% | +$6.48 billion +10% |
Source: RBA, released 7 June 2023, seasonally adjusted data, excludes commercial cards. Monthly change is Mar 2023 to Apr 2023, year-on-year change is Apr 2022 to Apr 2023.
Total number of transactions: credit and debit cards in April 2023
| Amount | Monthly change | Year-on-year change | |
| Debit cards | 915.7 million | -6.8 million -0.7% | -82.6 million 10% |
| Credit cards (personal cards only) | 283.6 million | -107,549 -0.04% | +19.4 million +7% |
| TOTAL - debit + credit | 1.20 billion | -6.9 million -0.6% | +102.0 million +9% |
Source: RBA, released 7 June 2023, seasonally adjusted data, excludes commercial cards. Monthly change is Mar 2023 to Apr 2023, year-on-year change is Apr 2022 to Apr 2023.
RateCity.com.au research director, Sally Tindall, said: “Some Australians are reaching for the plastic to keep themselves afloat amidst a sea of rate hikes.”
“As some households are doing everything they can to keep themselves out of the red, others aren’t thinking twice when they hit the shops,” she said.
“If your credit card is your plan B, then it’s time to come up with a better solution. While it’s a quick fix now, with an average interest rate of 17.71 per cent, things can turn very ugly if you can’t clear that debt in full,” she said.
Solutions for managing credit card debt
- Call your bank and ask to be put on their hardship program. The bank will work with you to find a solution.
- Tell your other providers you are in financial hardship. Many providers will see if you can switch to a cheaper plan or put you on a payment plan.
- Consider a circuit breaker. Renting out a spare room, moving somewhere cheaper and leasing out your home or selling up are options you may decide to consider.
- Get independent financial advice. Call the national debt helpline on 1800 007 007.
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Product database updated 28 Nov, 2024
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