The Latest Consumer Credit Card Trends in Australia in 2010
Australian Credit Card comparison website, CreditCardCompare.com.au has stating which state and demographic was more likely to use their credit cards in the first quarter of 2010.
It is evident that Australians believe their household debt is on the rise. This has in turn increased credit applications, limits and expenditure among the below categories.
- 18-34 year olds
- High Income earners
- Full-time workers
- Workers with Families
- Predominantly more men
- More people in Victoria
There has been a significant increase in credit applications since the March quarter 2009. The first quarter after the Christmas period is always a difficult time for many people, in particular families. A high proportionate of people regret their overspending in this time and try to find alternative interest rates.
Reflecting on this, CreditCardCompare.com.au can draw on the popularity of balance transfer credit cards and consumers looking for ongoing low interest credit cards. Cash back reward cards are also increasing in popularity as consumers are looking for other ways to earn back cash spent. Often this is coupled with an introductory or ongoing low interest rate. The popularity for these products will continue to rise as consumers strive to find easier avenues to repay their debts.
Using their debt to get more for their money, Full time and High income earners are still leaning towards the premium gold and platinum credit cards that provide rewards, appealing to people with more disposable income; frequent flyer points, free travel insurance, contents insurance, extended warranty cover are just a few of the many perks.
Further Outlook: Insights from D&B Survey March Quarter 2010
According to D&B (Jan 2010) Australians with children or working full time (both at 24%) expect their debt levels to increase.
Demand for new credit is most significant for those aged between 18-34, with 43% of Australians in this group expecting to apply for new credit.
A greater percent of 18-34 year olds will also apply for a credit limit increase and use credit to cover expenses.
For credit applications, credit limit increases and using their credit card to cover expenses there has been a significant increase in the male population.
43% of Australians anticipate a need to pay bills they couldn?t otherwise afford on the credit card during the March quarter.
37% of households indicated their intention to make a major purchase during the March quarter, 45% of Australians indicated they?d use their credit card to pay for their purchase.
In Victoria 30% of households expected to apply for new credit in the March quarter.
A higher percentage of Australians residing in Victoria (than any other state) intend to apply for a credit limit increase in the March quarter 2010.
Victorians are 51% of the population of households who expected a need to use credit to pay for otherwise unaffordable expenses in the March quarter.
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Credit Card Compare started in 2008 with the objective of allowing consumers to compare credit cards in one place, review the options and apply directly & securely online on the website of the bank or credit card lender. Consumers can compare a wide range of balance transfer credit cards and frequent flyer credit cards. The website also has a blog, the Credit Letter where our writers regularly post useful money saving tips and interesting personal finance editorials. Consumers interested in receiving money saving tips can subscribe to 'the Credit Letter' blog via RSS or follow Credit Card Compare on Twitter.