Tap-and-whoa: Aussies racked up $24 billion on credit cards in December - finder.com.au

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Tap-and-whoa: Aussies racked up $24 billion on credit cards in December

        • Borrowers left with $1,748 in holiday purchases per card
        • Interest from Christmas shopping will cost Aussies $194 million
        • Best balance transfer credit cards

19 January 2021, Sydney, Australia Funding Christmas festivities pushed Aussies $24.3 billion deeper into debt, according to Finder, Australia's most visited comparison site.

A new forecast of Reserve Bank of Australia (RBA) data analysed by Finder reveals the nation likely borrowed $24.3 billion on credit cards in December 2020.

Worryingly, that works out to be a debt bill of $1,748 per card.

Taking into account an average 55-day interest-free period, it's expected the interest from Christmas shopping will cost Aussies $194 million.

Taylor Blackburn, personal finance specialist at Finder, said many Australians were already experiencing problematic credit card debt before Christmas.

"Aussies spend more on credit cards in December than in any month and it can leave them teetering on the edge, struggling to keep up with repayments.

"This over-reliance on credit cards in December means the cost of Christmas is carried well into the new year and could take a toll on household budgets throughout 2021."

Thanks in large part to the pandemic, this spending figure is down $3 billion from the $28 billion we spent in December 2019.

Blackburn said the festive debt mountain could leave many with money worries for months to come.

"That's particularly worrying now that households are grappling with the economic impacts of COVID-19.

"A balance transfer could give credit card holders the chance to make more headway on their outstanding balance, especially if they're having difficulty making repayments."

According to the Finder database, there are currently more than 100 credit cards offering 0% interest on balance transfer deals, including the Citi Rewards Card which has the longest (30 months) interest-free period.

Finder calculates that transferring the average card rate to 0% for 30 months could save $1,711 on an existing balance of $5,000

"If you do have a debt hangover from Christmas, a balance transfer card might be just the tonic you need.

"But remember – a balance transfer gives you a break on interest, but it isn't a licence to ignore your debt.

"Often, 0% transfer cards will have a higher purchase rate, so if you do a transfer, don't plan to use your new card to spend until your old debt is squashed," Blackburn said.

Top 0% balance transfer cards available on Finder

CardBalance transfer offerPurchase rateAnnual feeAmount saved
Citi Rewards Card0% p.a. for 30 months. Interest-free days do not apply to new purchases while you carry a balance transfer debt.21.49% p.a.$49 annual fee for the first year ($149 p.a. thereafter)$1,711

over 30 months

St.George Vertigo Classic0% p.a. for 24 months13.99% p.a.$0 annual fee for the first year ($55 p.a. thereafter)$1,602

over 24 months

Westpac Low Rate Card0% p.a. for 24 months with 1% balance transfer fee13.74% p.a.$59$1,544

over 24 months

ANZ Low Rate0% p.a. for 25 months with 1.5% balance transfer fee12.49% p.a.$0 annual fee for the first year ($58 p.a. thereafter)$1,523

over 25 months

Coles No Annual Fee Mastercard0% p.a. for 12 months0% for 12 months, reverts to 19.99% p.a.$0$927

over 12 months

Source: Finder balance transfers comparison table, amount saved based on $5,000 balance at a current 20.00% p.a. interest rate

Tips to smash credit card debt

  • Reduce your interest rate on your current card: Compare balance transfer (BT) cards and check for interest-free periods. You could potentially save thousands.
  • Review your spending: Work out how much you are spending and where to see if there are areas you can cut back. Money management apps like the Finder app can help.
  • Leave the card in the drawer: In order to pay down your debt, don't add to it. Especially if you get a 0% balance transfer card to save on interest – don't make new purchases on either card unless it's an emergency.


For further information


The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About Finder

Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.

We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.

12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel

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