Aussies are paying off their credit card debts

The latest Reserve Bank credit card figures show that persistently high credit card interest rates are encouraging consumers to reduce their revolving card balances.

Credit card balances accruing interest fell 2.4 per cent in March – down from $35.8 billion in February to $35 billion in March. Over the 12 months to March balances accruing interest have fallen by four per cent.

The number of cards on issue has increased from 15 million to 15.2 million over the past 12 months, so the average balance accruing interest for each card account has fallen by 5.7 per cent since March last year.

Source: Banking Day