Credit card statistics in Australia at a glance
- Total credit card debt in Australia: $$41.64 billion
- Total number of credit card accounts: 13.54 million
- Average balance per credit card account: $3,076
- Average monthly credit card repayment: $2,631
- Average credit card balance being charged interest: $1,371
- Average value of a credit card transaction: $114
- Average number of monthly credit card transaction per account: 23.2
- Average credit card interest rate on outstanding balances: 18.38%
- Average annual credit card fee: $135
How much credit card debt is there in Australia?
Total credit card debt in Australia currently stands at around $41.64 billion, based on the total balance of all cards, according to the Reserve Bank of Australia. This is down considerably from the peak of more than $52 billion in 2018, but has been rising steadily in the last couple of years.
However, of the overall balance, interest is being charged on less than half (45% or $18.6 billion). This means the majority of credit card spending in Australia is repaid within the card's interest-free period.
How many credit cards do Australians have?
- There are 13.5 million credit card accounts open in Australia. However, there are around 17.7 million actual cards on issue, meaning for around a third of accounts there is more than one cardholder, on average.
- Based on Australia's adult population, there are around 0.64 credit card accounts per person, or 1.3 per household.
- According to the RBA, around 90.7% of all credit card purchases in Australia are made using a Visa or Mastercard credit card. The remainder are made using American Express credit cards or cards issued by Diners Club.
- However, Amex and Diners Club account for a higher proportion (21.2%) of the value of all transactions, meaning these cards are used for more expensive purchases typically.
Fun fact: If every one of the 17.7 million credit cards in Australia were laid out end-to-end, they would stretch to around 135.35km. That's roughly the distance between Melbourne and Bendigo.
As the trend chart below shows, the number of credit card accounts (including charge cards) has fallen by around 20% since early 2018 when it was at its peak.
The reason for this drop is the higher levels of mortgage borrowing we've seen since 2018, according to credit card expert, Brad Kelly. Borrowers are dropping credit cards to free up their borrowing capacity.
"Because of the way the consumer lending works, your credit card impacts the amount you can borrow with a mortgage," Kelly explained.
"The bank will say, if you get rid of that $10,000 credit card limit, we can give you another $100,000 on your mortgage. That can be the difference between getting a house and not. So people cancel the extra cards they don't need and reduce the limits on the ones they do."
What's the average credit card debt in Australia?
- The average credit card debt in Australia is $3,076 per account based on monthly balance. However, for balances being charged interest, the average is much lower at **$1,376 per account.
- The average credit limit is $9,459, meaning the typical credit cardholder spends well within their limit. In fact, the gap between the average credit card limit and the average monthly balance has grown over time.
Average credit card debt levels have also come down from their peaks, but they have stayed relatively stable compared to the number of credit card accounts.
As we've seen already, there are far fewer cards in circulation and they are also carrying less debt overall. However, that is not to say that overall credit card usage in Australia has fallen. The opposite is true in fact.
How much do Australians use their credit cards?
Credit card usage in Australia has never been higher. Following a relatively brief lull during the COVID-19 pandemic, spending has surged to almost $36 billion per month. That's 25% higher than it was pre pandemic.
Transaction volumes have also increased significantly. In fact, they have more than doubled in the last 10 years – from around 10 monthly transactions per credit card on average in 2013, to around 23.2 monthly transactions today.
This has caused the average transaction value to drop too, from around $140 in 2013, to the current level of around $114 for an average transaction.
Kelly explained this is because the way people spend money has fundamentally changed. "People are now prepared to put a cup of coffee on their credit card and other little bits and pieces, because no one wants to carry cash. That's why you get these massive transaction volumes," he said.
However, he added that as overseas travel continues to increase following the pandemic, the average transaction amount will likely rise again.
Credit cards usage by Australians overseas
- The average overseas credit card purchase (excluding cash advances) is higher at $173, than domestic purchases at $111, although overseas purchases make up just over 6% of the total value of all credit card spending.
- Australian credit card users who use their card for an overseas purchase will on average be charged a currency conversion fee of 2.58% according to Money.com.au analysis. However, there are plenty of credit cards with no international fees.
Credit card cash withdrawals
As for people using their credit card to access cash (e.g. at an ATM), not surprisingly this has been falling steadily and is now back around the level it was in 1996.
Dealing with Australia's credit card debt
Expert tips
While Australians now carry less credit card debt on average than they have in the past, it can still be a significant problem for some. We looks at some strategies for tackling it.
