{"id":108627,"date":"2026-01-18T09:30:00","date_gmt":"2026-01-17T22:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=108627"},"modified":"2026-01-16T23:51:34","modified_gmt":"2026-01-16T12:51:34","slug":"credit-card-debt-soars","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/credit-card-debt-soars\/","title":{"rendered":"Credit Card Debt Soars: Aussies Struggle Under Rising Interest Rates"},"content":{"rendered":"\n

It starts with a tap \u2014 a new pair of shoes, a dinner out, a bill you\u2019ll \u201csort later.\u201d But before long, that Credit Card balance has ballooned into something bigger than expected. Across Australia, millions are feeling the pinch, and the numbers show that debt is creeping back with a vengeance.<\/p>\n\n\n\n

A Growing Pile of Credit Card Debt<\/h2>\n\n\n\n

According to the Reserve Bank of Australia (RBA<\/a>), total Credit Card debt accruing interest has climbed to more than $17.5 billion, the highest level in almost four years. That\u2019s roughly $1 billion more than last year \u2014 a jump that paints a clear picture of how households are coping with rising costs.<\/p>\n\n\n\n

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Facade of an RBA building<\/figcaption><\/figure>\n\n\n\n

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The number of active credit card accounts has also continued to rise, now sitting at around 13.5 million nationwide. This rebound suggests Australians are increasingly turning to credit to help manage everyday expenses as inflation continues to stretch household budgets.<\/p>\n\n\n\n

Experts say that after years of low interest rates and steady spending, higher costs are pushing more people to rely on their cards for essentials such as food, fuel, and bills. The shift points to a deeper trend: consumers are not necessarily overspending on luxuries but are using debt as a survival tool.<\/p>\n\n\n\n

Interest Rates Making the Climb Harder<\/h2>\n\n\n\n

The average interest rate on standard credit cards is around 19.9%, with some products charging more than 22%. That means a $5,000 balance could cost nearly $1,000 a year in interest alone if not paid off, explains 9News.<\/a><\/p>\n\n\n\n

Because interest compounds monthly, those who make only minimum repayments may find their debt barely shrinking. Financial analysts have long warned that credit card interest rates tend to remain stubbornly high, even when broader economic conditions change.<\/p>\n\n\n\n

With the RBA\u2019s cash rate expected to stay elevated through much of 2026, the situation may not improve soon. Households already managing large mortgages or rising rent costs could find it increasingly difficult to reduce their balances.<\/p>\n\n\n\n

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Record spending leads to Aussies facing credit card debt of nearly $20 billion as interest rate rises loom

Australians put a record amount of money on their credit cards in November, sparking fears of a debt that could reach tens of billions of dollars.

Nearly $30 billion was\u2026<\/p>— LTN \ud83d\udc1d (@Livetradingnews) January 13, 2026<\/a><\/blockquote>