Credit cards used 131 million times in July, record figures show

Aussie credit card debts have increased as the products were used to pay for goods 131 million times in July, one publication has revealed.

Credit cards were used to pay for goods a record 131 million times in July, it has been revealed.

According to the Age, this figure is more than any previous July and is an increase of three per cent compared to last year.

But Aussie credit card debts are also up as people owed $ 47.8 billion in the month, a rise of 6.5 per cent or $ 159 per card in contrast with the same time last year.

Commonwealth Securities economist Savanth Sebastian said there are indications that consumers are starting to spend once again.

He added: “The three rate hikes in March, April and May took a toll on household budgets, but the conservatism is thawing. The Reserve Bank (RBA) needs to allow it to bloom.”

Earlier this month, the RBA maintained the interest rate at 4.5 per cent – it has not upped the level since May – and governor Glenn Stevens predicted that the global economy would probably slow down later this year.

Another sign that Australians are still comes from Eftpos figures after it was revealed that almost $ 13 billion was spent at the terminals in July, although there was a decrease in terms of the money spent per transaction – an average of $ 56.24 in the month, down from $ 58.80.

In addition, there was a 15 per cent growth in the amount of times people used cards at Eftpos machines in supermarkets during July.

However, there is evidence of caution in the housing market as home loans were down by 21 per cent and borrowing for alteration and additions to properties decreased by 19 per cent.

But commercial loans have made a turnaround with a four per cent increase in the year to July following a 17 per cent decrease in the year to the previous July.

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