Average Aussie spends a year of life 'paying off credit card interest'

Paying off the interest amounted on a credit card takes up a year of the average Australian's life.

The average Australian spends a year of their life simply paying off the interest that amounts on their credit card, according to one industry expert.

Mark Carnegie, writing for Business Spectator, said there are far too many people missing out on the "best financial deal" they can make.

He added that by increasing the mortgage on someone's house they could then pay off their Aussie credit card and cut if it? up.

"Anybody adopting this particular piece of financial engineering needs to clearly understand that the last step is the most important," he enthused.

There was a record $47 billion in account balances at Christmas, which means Australians are "addicted to credit cards".

And people should be reminded that it is "only" 40 years since the credit phenomenon began.

Figures released by the Reserve Bank of Australia earlier this month stated the overall amount of charge and credit card transactions has increased by 6.05 per cent in February compared to January.

By Kate Guthrie