- Home
- Home Loans
- News
- Alarms bells ring as credit card debt rises for 2nd month in a row
Alarms bells ring as credit card debt rises for 2nd month in a row
Australia’s total credit card debt has risen for the second month in a row to $17.24 billion, according to new data released today from the RBA.
For the first time since May 2019, the number of credit card accounts has also risen month-on-month, albeit slightly, to a total of 12.4 million accounts.
RateCity.com.au research director, Sally Tindall, said: “The warning bells are ringing with credit card debt rising for the second month in a row.”
“People who went to town on their credit cards in the November sales may now be struggling to pay it all back, especially if they’ve been financially impacted by COVID,” she said.
“With rising inflation sending the price of goods, like petrol, soaring, some families could be turning to their credit cards to help pay the bills”.
The RBA statistics also showed the number of credit card accounts has risen for the first time in over two and a half years.
“Credit card companies are actively promoting ‘no interest’ cards to take on the booming buy now, pay later sector, so it’s no surprise to see the number of credit card accounts creep up,” she said.
“If you’re struggling to pay the bills because of Omicron, or some other change in circumstances, pick up the phone and ask your providers for help.
“Your credit card might get you out of a tight squeeze, but if you can’t pay it back the next month in full, you could find yourself in a world of pain,” she said.
Tips to deal with credit card debt
- Call your bill providers (energy, telco etc) and ask for a temporary reprieve.
- Cut back on non-essential spending until your credit card is back in the black.
- Ask your credit card provider for a reduced interest rate or consider switching to a low-rate card.
- An alternative is to switch your debt to a personal loan which forces you to pay the debt back in full.
- Once you’ve cleared your debt, consider dropping your credit card limit or cutting up the card altogether.
Disclaimer
This article is over two years old, last updated on February 7, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
Compare home loans in Australia
5.74%
5.65%
$3,143
Australian Credit Licence 234945
Fees & charges apply
- Promoted
- 2024 Award Winner
- Special
- Owner Occupied
- Variable
- 20% min deposit
- P&I
5.84%
5.86%
$3,173
Australian Credit Licence 230686
Fees & charges apply
Products issued by ubank, part of NAB
- Promoted
- Special
- Owner Occupied
- Variable
- 40% min deposit
- P&I
5.69%
5.70%
$3,127
Australian Credit Licence 241167
Fees & charges apply
- Promoted
- Cashback
- Owner Occupied
- Variable
- 40% min deposit
- P&I
5.79%
5.83%
$3,158
Australian Credit Licence 395219
Fees & charges apply
- Promoted
- Owner Occupied
- Variable
- 10% min deposit
- P&I
6.04%
6.09%
$3,234
Australian Credit Licence 238311
Fees & charges apply
- Promoted
- Owner Occupied
- Variable
- 40% min deposit
- P&I
5.39%
6.44%
$3,038
Australian Credit Licence 230686
Fees & charges apply
- Promoted
- Owner Occupied
- Fixed 3 years
- 20% min deposit
- P&I
6.14%
6.15%
$3,264
Australian Credit Licence 233714
Fees & charges apply
- Promoted
- Owner Occupied
- Variable
- 20% min deposit
- P&I
6.04%
5.95%
$3,234
Australian Credit Licence 234945
Fees & charges apply
- Promoted
- Special
- Investor
- Variable
- 20% min deposit
- P&I
5.69%
5.95%
$3,127
Australian Credit Licence 395219
Fees & charges apply
- Promoted
- Owner Occupied
- Fixed 3 years
- 10% min deposit
- P&I
6.84%
6.84%
$3,483
Australian Credit Licence 234527
Fees & charges apply
- Promoted
- Cashback
- Owner Occupied
- Variable
- 10% min deposit
- P&I
6.71%
6.75%
$3,442
Australian Credit Licence 230686
Fees & charges apply
- Promoted
- Investor
- Variable
- 10% min deposit
- P&I
6.19%
6.99%
$3,280
Australian Credit Licence 234527
Fees & charges apply
- Promoted
- Cashback
- Owner Occupied
- Fixed 2 years
- 10% min deposit
- P&I
Product database updated 18 Apr, 2025
Share this page
Get updates on the latest financial news and products
By continuing, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.
Promoted home loans
Variable Rate Home Loan LVR < 80%
Real Time Rating™
- 2024 Award Winner
- Special
- Owner Occupied
- Variable
Interest rate p.a.
5.74%
Comparison rate* p.a.
5.65%
Australian Credit Licence 234945
Fees & charges apply
Neat Home Loan
Real Time Rating™
- Special
- Owner Occupied
- Variable
- 40% min deposit
Interest rate p.a.
5.84%
Comparison rate* p.a.
5.86%
Australian Credit Licence 230686
Fees & charges apply
Mortgage Non Offset Home Loan
Real Time Rating™
- Cashback
- Owner Occupied
- Variable
- 40% min deposit
Interest rate p.a.
5.69%
Comparison rate* p.a.
5.70%
Australian Credit Licence 241167
Fees & charges apply
Variable Home Loan
Real Time Rating™
- Owner Occupied
- Variable
- 10% min deposit
- P&I
Interest rate p.a.
5.79%
Comparison rate* p.a.
5.83%
Australian Credit Licence 395219
Fees & charges apply
Product data updated on 18 Apr 2025
