Things you didn't know about credit cards [Infographic]
Credit card interest is costing Australians a lot of money.
We use credit a lot. Australia has a national credit card debt accruing interest of 31 billion.1
Aussies borrowed a collective $29 billion on credit cards over Christmas alone in 2017.1
On an average 55-day interest-free period, December 2017 cost Aussies $230 million in interest.2
Many of us are not as good at managing credit card debt as we think we are.
19% of card holders take longer than three months to service their debt. 5% of this group takes a year or more!2
One-third of Australians pay interest without realising it but the real figure is about double that.3
70.19% of Aussies have a credit card. 20.69% of adults 35-54 have 3 or more!4
Reward programs are not always rewarding for all of us.
Decreases in credit cards rewards value in the last 12 months in Australia are at around 63%.5
After fees, reward programs deliver little or nothing unless you spend well over $5,000 on your card monthly.5
Cards with reward programs are enticing, but often come with higher fees and above average interest rates.5
With these credit card secrets revealed, be sure to rethink how you’re using them. Remember to always try and pay the balance in full to avoid paying interest on your purchases and check if these annual fees and points gained provide real value.
Sources:
1 http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4102.0main+features402014#credit
2 https://www.finder.com.au/australians-have-racked-up-29-billion-in-christmas-credit-card-debt
3 http://www.abc.net.au/news/2015-12-16/credit-card-debt-australia/6928326
4 https://www.finder.com.au/credit-cards/credit-card-statistics
5 http://www.smh.com.au/money/borrowing/credit-card-reward-value-falls-63-per-cent-over-past-year-20170831-gy7zun.html
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