Australians cut $ 11.1 billion in credit card debt

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National interest-racking credit card debt has fallen to its lowest level in nearly two decades as Australians prepare to write off debt during the lockdown.

RBA data released today shows interest on personal credit card debt fell by $ 1.11 billion from June to July 2021, to a total of just $ 18.90 billion – the lowest level since February 2004, in original terms.

This is the largest monthly drop in interest-accumulating debt since last July, when the country emerged from a nationwide lockdown and government initiatives such as early access to the super program were underway.

Credit Card Statistics: Personal Credit Cards In July – excludes commercial cards

Rising Monthly change Change from year to year
Number of accounts

12.47 million

lowest since February 2007

-44,116

-0.4%

-670 419

-5.1%

Interest-bearing balances

$ 18.90 billion

lowest since February 2004

-1.11 billion dollars

-5.5%

-2.57 billion dollars

-12.0%

Value of transactions

$ 19.53 billion

-2.52 billion dollars

-11.4%

– $ 396 million

-2.0%

Source: RBA, published September 7, 2021, original data, excluding commercial cards. The monthly variation is from June to July 2021, the variation from one year to another is from July 2020 to July 2021.

RateCity.com.au Research Director Sally Tindall said: “Australians have reduced over $ 1.1 billion in credit card debt in just one month. It is a colossal effort.

“Lockdowns are a kick in the guts, especially for those who cannot work, but it has helped many households to focus on eliminating bad debts,” she said.

“While the government didn’t let people loot their super this time around, the savings from lockdown and tax returns may have helped some families find some extra cash.

“At the onset of COVID, Australians forgave nearly $ 7 billion in total interest-bearing debt in just six months. This time around, it looks like the blockages are having a similar effect. If this trend continues, we could see the national debt accumulate interest falling below $ 18 billion over the next two months.

“While we would all prefer to get out of confinement and live freely, at least thousands of families can breathe a sigh of relief knowing that their credit card debt no longer holds sway over them,” she said. .


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