Credit card debt is falling

Credit card debt levels have plunged to their lowest point in 14 years.

The latest Reserve Bank data shows the average credit card balance fell 1 per cent to $3262 in August. This comes hot-on-the-heels of a 2 per cent decline in July. On an annual basis, credit card balance have grown only 0.5 per cent in 2012 – the slowest growth in almost 3 years

Despite recent Reserve Bank cuts to interest rates, CommSec chief economist Craig James said it is clear Aussies no longer have an appetite for debt.

“There is no sign of consumer conservatism coming to an end,” he said. “Official cash rates have been slashed with no sustained and discernible lift in spending or borrowing.”

Source: The Daily Telegraph