Warnings over Christmas credit card debt

High levels of credit card debt could cause problems for Casey and Cardinia residents in 2010.

Casey and Cardinia residents could face financial problems this year because of high credit card debt.

The Pakenham Cardinia Leader cites research from BrandManagement noting credit card holders in the area increased their debt by around $1,000 over the festive season.

Christmas spending sent the average Casey and Cardinia credit card holder's red balance to over $3,200, the research commissioned by financial services company Aussie noted.

Adding to debt woes is the fact that three-quarters of these credit card holders are paying an interest rate of over 16 per cent on their debt.

Susan Magee of Casey North Information and Support Services told the news provider job losses in the area have meant many residents need to rely on credit cards to cover their day-to-day living expenses.

Commenting on the figures, Aussie executive chairman John Symond noted: "These high levels of debt racked up over the silly season can spell a hell of a financial hangover for the new year."

Earlier this month, Mr Symond recommended Australians in credit card debt should switch to an Aussie Mastercard with a six-month introductory interest rate of 2.99 per cent.

By Emma North