Australian’s Getting Money-Wise as Credit Card Debt Improves.
Debt Rescue’s mission is to change the stigma associated with debt through bringing debt management into mainstream consciousness. The latest analysis of credit card data from the Reserve Bank Australia proves Australian’s are getting smarter with their money.
The analysis showed the year-on-year growth of balances accruing interest has stalled which means car holders are working harder to pay off their debts.
Before 2006, a trend in repayments showed credit card holders would add to the unpaid debt on their cards at a rate of 10-20% each year.
That trend began to turn as card holders started to make larger repayments and interest-accruing debt began to fall.
And in June, the total debt cardholders interest rose just 0.12 per cent compared to June 2011 – the second-lowest change on record and lower than during the GFC.
The current trend is expected to continue after the recent credit card reforms which force banks to outline the length of the debt with only minimum repayments.