Recent research has revealed a concerning trend: a significant number of Australians are falling behind on their credit card repayments, highlighting the financial strain faced by many households.
According to Finder’s Credit Card Report 2024, approximately 13% of Australian credit card holders, equivalent to nearly 1.8 million individuals, have missed at least one repayment in the past three months.
Of this group, 8% have fallen behind by 30 days, while 4% have missed payments by 60 days.
Alarmingly, 2% of cardholders have delayed repayments by more than 60 days.
Prevalent misuse
Amy Bradney-George, a credit card expert at Finder, expressed concern over the prevalent misuse of credit cards, attributing it partly to the escalating cost of living.
Bradney-George warned that missing a credit card payment often incurs late fees and interest charges, exacerbating financial burdens for individuals.
Bradney-George emphasised the detrimental impact of late payments on credit scores.
She highlighted that a missed payment can be recorded on a credit file within just 14 days, potentially affecting an individual’s ability to secure loans or new credit cards in the future.
With details of late payments lingering on credit reports for up to two years, the consequences could be long-lasting.
Currently, there are over 13 million credit cards in circulation across Australia, accumulating a national debt of $18.1 billion subject to interest charges.
