December credit card repayments increased
December credit card repayments increased on the back of the Australian governments first 10.4 billion stimulus package. The Reserve Bank of Australia has presented figures which showed a 22 percent increase in the amount of money spent on credit card repayments in the month.
The Australian Government first stimulus package was designed to strengthen the Australian economy by giving cash handouts to low and middle income earners in early December 2008. As suspected some people would use the cash to repay debts and a lot of Australians replayed their credit card debts with their handout.
“about a billion dollars has gone onto credit cards in the past month or two.”
(ABC, 2009, December credit card repayments at 3-year high)
Consumers have continued to make purchases with their credit cards during the Christmas period so the planned impact of the stimulus package has shown signs of its effectiveness in increasing retail trade figures in the December period when credit card spending rose by 20 %.
All this shows is that people are more aware of their credit cards debts and are trying to decrease there debts to reduce or even eliminate interest charges with the ultimate goal of saving money.
Consumers can save even more money on interest repayments if they reduce the interest rate of their credit cards. If you have a credit card with an interest rate above 15% you could save hundreds of dollars every year just by transferring your credit card balance to a low interest rate credit card.
Tags: Balance transfers, Credit Cards, Low Interest, repayments
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