From COMMSEC:
Figures released from the Reserve Bank show that the average credit card balance rose by just $8.60 (0.3 percent) to $3,235.60 in May. The average credit card balance was flat on a year ago. In smoothed terms (12 month average) the average balance was down by 1.9 per cent.
- Of credit cards attracting interest charges, the average outstanding balance fell by $24.10 in May to $2,228.30. The average balance accruing interest is down by 3.3 per cent on a year ago. In smoothed terms (12 month average) the average balance was down by 4.9 per cent.
- The number of credit cards rose by 8,000 in May to 15.451 million after falling by 212,000 in the previous two months. Credit card accounts are up just 0.8 per cent on a year ago.
- The average credit card limit fell by $23.40 to $9,274.70 in May. The average credit card limit rose by 2.1 per cent in the year to May.
- The average number of transactions on credit cards in May was 10.8, up from 10.5 in March. In smoothed terms the average number of credit card transactions hit a record high of 10.56 in May. The average purchase on a credit card was $136.76 in smoothed terms (average for the year to May).
- The average number of transactions on debit cards in May was 8.0, up from 7.7 in April. In smoothed terms the average number of debit card transactions was 7.79 in May – a record high. The average purchase on a debit card is $53.73.
- The number of debit card accounts rose by 8,000 to 38.489 million in May.
- The rolling annual average of ATM transactions in May was down by 4.7 per cent over the year – the 22nd consecutive annual decline and highlighting the on-going trend away from cash to electronic value transactions.
Here’s the chart that really matters:
Adjust that for population growth and it’s is one bad case of debt revulsion, which started right around the time that interest rates began falling. One wonders if there’s not some displacement effect here from the rise of mortgage offset accounts and equity withdrawal.
