A million Aussies struggle with their credit cards

Around one million people in Australia only ever make the minimum interest payments on their credit card balances, according to a survey of 2000 consumers by market analyst Datamonitor.

The survey found that while most people use their credit cards as a convenient payment tool, around a quarter regularly make purchases they wouldn’t otherwise be able to afford using credit.

Almost 18% of consumers reported paying interest every month, while 9% – which equates to around one million people – admitted they can only manage to pay the minimum required on the cards each month.

When asked how respondents felt about their credit limit, 8% of credit card customers in the survey said they felt their credit limit was too high because it tempted them to overspend.

As for what attracts consumers to a particular credit card, by far the most significant factor cited were low fees, with 86% saying that was their main criterion for selecting a card, ahead of interest rates (54%) and an attractive reward program (47%).