The latest analysis by financial services company Canstar shows that personal credit card interest rates will only be lowered 15 times in 2020, and the average credit card interest rate will only drop slightly by 0.03%. Although RBA’s official cash rate has fallen from 0.75% to a record low of 0.1% in the past year. But now the average credit card interest rate is as high as 16.91%, and consumers are choosing not to play. Data released by the RBA this week showed that credit card interest-bearing liabilities were close to their lowest level since 2004, but in November there was a slight increase to 19.96 billion Australian dollars, partly due to a boost in Black Friday consumption. The amount of debt has fallen from A$31.6 billion three years ago. Canstar spokesperson Effie Zahos said that consumers paid A$744 million in debt in 2020. An Australian Banking Association spokesperson said that if consumers are dissatisfied with their credit card charges, they can look at the offers of other financial institutions. “Consumers can choose which card to use. Some people care about reward programs and other features, and some people prefer the lower the interest rate, the better.” He said, “Australian banks and non-bank lenders provide a variety of credit cards for different consumption. Therefore, Australians should find the card that suits them best.” In recent years, many Australians have begun to switch to a buy-and-pay system. In the 2017-18 fiscal year, the transaction volume was only A$3.1 billion, while in the 2018-19 fiscal year, it nearly doubled to A$5.6 billion.
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