Money Australians left with $29 billion credit card debt bill after Christmas

08:06  10 january  2018
08:06  10 january  2018 Source:   msn.com

Credit card debt: Typical balance at a 10-year low prior to Christmas

  Credit card debt: Typical balance at a 10-year low prior to Christmas It was once routine for our collective credit card bill to smash records during the festive season. But consumers are now more cautious.The latest figures on card use from the Reserve Bank shows the typical outstanding credit card balance was $3061.90 at the end of October, the lowest since late 2007.

Credit card debt : Typical balance at a 10-year low prior to Christmas . It was once routine for our collective credit card bill to smash records during the festive season. Instead, he encountered a black hole of labour subcontracting and was left ,000 in debt before he had even started work.

Australians left with $ 29 billion credit card debt bill after Christmas . This is great news to help get finances on track after the holiday season.

A shopper carrying shopping bags.© Jonathan Brady/PA Images via Getty Images A shopper carrying shopping bags.

Australia is waking up to an almighty festive financial hangover, with new data indicating the nation racked up $29 billion worth of credit card debt in December.

Aussies spent, on average, $1,727 per credit card in the month leading up to Christmas, a Finder.com.au analysis of Reserve Bank data revealed.

Factoring in the 55-day interest free period offered by some banks, it's estimated that the interest left to be paid on Christmas credit card debt will total $230 million.

Insights Manager at Finder Graham Cooke said some Australians were looking at a timeframe of months to pay off the purchases made for just one day of the year.

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Australians Left With 29 Billion Credit Card Debt Bill .

Australians Left With 29 Billion Credit Card Debt Bill .

"Aussies spend more on credit cards in December than in any month," said Cooke.

"This over-reliance on credit cards in December means the cost of Christmas is carried well into the new year and could take a toll on household budgets throughout 2018."

A survey of credit card holders found that 81 percent of borrowers planned to pay off their holiday debt within three months. Almost 20 percent will take longer than three months, with 5 percent of borrowers taking a year or more to wittle down their debt.

Buy now, pay later services boom over Christmas

  Buy now, pay later services boom over Christmas The wild popularity of buy now and pay later services in Australia will likely spark more innovation from the banks to compete, a retail industry analyst says.But in 2018, the proliferation of buy now-pay later services means many Australian shoppers will have payments due to companies such as Afterpay as well.

How much did you spend over Christmas ? If you’re like many Australian you will be left with a financial hangover from Christmas . A new forecast of Reserve Bank of Australia (RBA) data analysed by finder.com.au reveals the nation borrowed $ 29 billion on credit cards in December

Australians have racked up $ 29 billion in Christmas credit card debt . Although the Christmas decorations have been packed away, Aussie credit cardholders are still burdened with the debts from their generosity over the festive season.

Official retail figures for December 2017 are yet to be released, but the Australian Retailers Association and Roy Morgan Research estimates total pre-Christmas sales will reach as high as $50 billion.

"Although there have been various disruptions to the Australian retail market throughout the year, we look forward to seeing our pre-Christmas and post-Christmas predictions come to fruition when the retail trade figures are released in the new year," Russell Zimmerman, Executive Director of the ARA said.

The credit card debt bill coincides with the release of ANZ's Consumer Confidence Index, which has shown a moderate rise of 4.7 percent, reaching a new high not seen since November 2013.

ANZ's head of Australian economics David Plank said that while consumer confidence usually rises in the first reading for January, this year's lift was more than just a festive boost

"The increase this year is stronger than the 3.6 per cent average lift in confidence for the past nine 'annual turns', indicating that the gain in confidence is more than just seasonal," said Plank.

"It is encouraging that consumers seemed willing to overlook their high debt burden, moderating house price gains and the impact of higher petrol prices."

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