Consumer Payment Card News

Credit Card Crikey as Australians Shun Fantastic Plastic Debt & Spending

When it comes to fantastic plastic in 2018, it has been credit card crikey, with monthly decreases in 2018 in the amount Australians owe declining 0.2% and the amount of purchases slipping 1.0%, compared to one-year ago, according to figures collected by CardData.

Australian Credit Card Dat

AU Debt Aversion

Analysis by RAM Research reveals the average credit card balance per account has declined from AU$3260 one-year ago to AU$3200 for November 2018. The average amount of purchases made with a credit card rose ever so slightly to AU$1828 per account for November 2018, compared to AU$1799 for November 2017.

The ANZ-Roy Morgan Australian Consumer Confidence index notes improvements in sentiment toward current economic conditions were not strong enough to offset falls in the future sentiment of economic conditions.

Compared to U.K. and U.S.A.

According to the latest consumer credit statistics released by the Bank of England (BOE), annual consumer credit growth slowed to 6.6% in December.

U.S. consumer revolving credit, mostly credit card debt, increased at an annual growth rate of 5.5% in November, according to the latest data released by U.S. Federal Reserve.

Australian credit card outstandings, or debt, declined to AU$52.1 billion in November, compared to AU$52.2 billion for November 2017. For October, credit card debt posted at AU$51.6 billion, based on data publicly released by the Reserve Bank of Australia.

Australian credit card credit limits, declined 0.8% year-on-year (YOY) to AU$151.9 billion in November, compared to AU$153.1 billion for November 2017. For October, credit card credit limits posted at AU$152.1 billion.

AU Credit Card Usage Slow

Purchase dollar volume (PDV), or the amount of purchases charged to credit cards, decreased 1.0% YOY in November 2018 to AU$29.2 billion. For November 2017, credit card PDV reported as AU$28.8 billion and for October 2018 posted as AU$29.5 billion.

Meanwhile, cash dollar volume (CDV), or cash advances taken with a credit card, soared 9.9% YOY racking up AU$880 million in November, compared to AU$734 million in October 2018 and AU$801 million for November 2017.

Overall, Australian credit card gross dollar volume (GDV), or the sum of PDV and CDV, rose 1.4% YOY in November, driven by the surge in CDV. For November 2018 GDV was AU$29.2 billion, compared to AU$30.3 billion in October 2018, and AU$28.8 billion for November 2017.

The number of credit and charge card accounts edged down 0.4% YOY in November to 15.97 million, compared to 16.01 million in the prior month, and compared to 16.69 million one-year ago.

Australian Consumer Credit Card Outstandings

Nov 2016: AU$52.4 billion
Nov 2017: AU$52.2 billion
Oct 2018: AU$51.6 billion
Nov 2018: AU$52.1 billion

Australian Consumer Credit Card Credit Limits

Nov 2016: AU$151.1 billon
Nov 2017: AU$153.1 billion
Oct 2018: AU$152.1 billion
Nov 2018: AU$151.9 billion

Australian Consumer Credit Card Purchase Volume

Nov 2016: AU$27.1 billion
Nov 2017: AU$28.8 billion
Oct 2018: AU$29.5 billion
Nov 2018: AU$28.5 billion

Australian Consumer Credit Card Cash Advances

Nov 2016:  AU$795 million
Nov 2017: AU$801 million
Oct 2018: AU$734 million
Nov 2018: AU$880 million

Australian Consumer Credit Card Gross Dollar Volume

Nov 2016: AU$27.7 billion
Nov 2017: AU$28.8 billion
Oct 2018: AU$30.1 billion
Nov 2018: AU$29.2 billion

Australian Consumer Credit/Charge Card Accounts

Nov 2016: 16.67 million
Nov 2017: 16.69 million
Oct 2018: 16.01 million
Nov 2018: 15.97 million

Complete Current and Historical Credit Card Data

Source: Reserve Bank of Australia; CardData; RAM Research