Australians Rack Up Credit Card Debt at 18%-24% Rates as Living Costs Squeeze Paychecks
Updated
Updated · thetimes.com.au · Jun 4
Australians Rack Up Credit Card Debt at 18%-24% Rates as Living Costs Squeeze Paychecks
2 articles · Updated · thetimes.com.au · Jun 4
Summary
Australian households are increasingly putting groceries, fuel, utilities and school costs on credit cards, pushing the country toward one of its biggest nominal card-debt burdens on record.
Rates of 18% to 24% on many cards are turning short-term cash-flow gaps into entrenched debt, with minimum repayments often barely cutting balances once interest, fees and missed-payment penalties accumulate.
Financial counsellors report families using multiple cards, balance transfers and buy-now-pay-later accounts at once, while younger Australians enter debt earlier and retirees use cards to supplement fixed incomes.
The strain is falling hardest on lower- and middle-income earners, while wealthier households typically clear balances monthly and rely on savings buffers, offset accounts and cheaper borrowing options.
The rise in unsecured debt points to broader household stress beyond mortgages, as higher food, housing, insurance, electricity and fuel costs leave many full-time workers struggling between paydays.