June credit spend to fuel RBA fears

Australians spent $12.4 billion in June on credit and debit card purchases – up 4 per cent on May and the second-highest monthly total on record. The June spend was second only to December 2003 when card holders racked up $13.7 billion. It was also a 16 per cent increase on June last year. Although Australian households' debt is now running at 150 per cent of disposable income, most of that debt is wrapped up in the family home. The strong increase in credit spending may concern the Reserve Bank which has already warned about the high levels of household debt.