Are high credit card interest rates really so bad?
The average interest rate charged on credit card purchases in Australia is about 17.6 per cent. The average annual fee is about $115.
That rate only kicks in when you are late paying off your credit card bill. Just under 30 per cent of credit card users do not pay their credit card bills in full and attract interest.
So everyone pays the annual fee but only the people ‘revolving’ their credit card from month to month are affected by high interest rates.
With unemployment up the number of people struggling to pay their credit card bill is likely to rise.
Source: The New Daily