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Date Published : Friday, May 16, 2008
The total amount spent on credit cards during March dropped slightly, as rising interest rates and the credit crunch halted consumer spending, new statistics have revealed.
According to figures from the Reserve Bank of Australia (RBA), the nation's credit card balance fell by 0.5 per cent in March to $43.04 billion - down from February's $43.25 billion.
The reduction was down to an increase in monthly repayments as consumers across the country got their finances in order.
Total repayments rose by 5.4 per cent from $16.77 billion to $17.67 billion.
However, despite the fall in the total balance on credit cards, an extra 65,000 people signed up for bank accounts with credit cards in March, bringing the total number of credit card accounts to 14.08 million.
Credit cards are the most popular form of payment for goods and services across the country, the RBA data showed.
Meanwhile, the number of cash advances on credit and charge cards rose from 2.83 million to 2.91 million, as the value of advances increased from $1.04 billion to $1.08 billion.
Recently, the RBA's governor Glenn Stevens said that consumers across the country may have to put up with high inflation for some time ahead, as rising fuel and food prices harm the amount of disposable income available.
He stated: "In the short term, inflation is likely to remain relatively high, but it should decline over time provided demand evolves as expected."
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