Credit card activity falls

Australians are using their credit cards less often, new figures show.

In the latest findings from the Reserve Bank of Australia (RBA), the overall value of charge and credit transactions fell from the $18.77 billion recorded in March to stand at $17.37 billion for April.

A decline has also been seen in cash advances. With the number of such withdrawals dropping 10.9 per cent over the course of April, the value of advances is down 13.5 per cent to stand at $895 million.

However, while the rate of borrowing using credit cards has declined so too has the rate of payment on balances owed.

April saw credit card repayments drop 7.9 per cent during the month to $18.168 billion.

In spite of such falls the number of credit and charge accounts rose by 54,000.

Those looking to get to grips with their debts, however, may want to select a card offering 0% balance transfers.

Meanwhile, Money-AU.com recently urged people to be aware that while a minimum payment reduction on their credit cards will mean their minimal monthly repayments will fall, doing so could mean that they end up paying back their debts for longer.

Written by Bret Clement