Credit card debts coming down
Australians continue to embrace credit cards. Over 80% of households own a credit card, with an average holding of two cards per household (including bank and store cards). Only 12% of households don’t own a credit card and these tend to be low income earners, typically retirees. The majority of cardholders are managing their credit cards well – 61% aim to pay off their card in full every month.
As a result, the median card debt per household has fallen from $1,802 in Q1 to $1,673 at present. Not surprisingly our comfort with card debt has improved, up from 5.7 (out of a possible 7) in Q1 to 5.8 in Q2. Currently 55% of households are ‘very comfortable’ with their card debt, up from 49% in Q1. Only 3% say their card balance is increasing each month, a further 4% of cardholders describe their card debt as being out of control.
Source: ING Direct