Rise in credit card spend recorded

Despite the ongoing economic crisis, the nation's willingness to spend money may be set to increase, one financial expert suggests.Although people are taking a cautious approach towards credit in the current climate, CommSec economist Savanth Sebastian st

Credit card spending is on the rise, new Reserve Bank figures show.

Over the course of May, credit card purchases accounted for a total of $16.896 billion, an increase of 2.5 per cent from the $16.482 billion recorded in the previous month.

For those looking for an effective means of funding expenditure, seeking out a credit card that offers an interest free period could be advisable.

And carrying out a balance transfer to such a product may also be recommended for those in significant levels of debt as the average outstanding balance stood at $3,093.70 in May, the Australian Associated Press reveals.

Overall, outstanding credit and charge card balances are two per cent higher now than they were 12 months ago.

However, as of late it appears people are taking fewer steps to pay back what they owe, as total credit card repayments fell for the second consecutive month during May, down 1.3 per cent over the past year.

In an effort to get on a firm financial footing, Tony Rigby, AMP financial planner, suggested that people keep a close eye on what items have been paid for using credit cards and to create a monthly profit and loss account.

Written by Mark Hornby