Credit card loyalty costing Australians $1 billion
The average Australian credit card holder could save $100 a year by switching their card amid the cost-of-living crisis, new research has revealed.
Analysis released by comparison site Finder showed more than 11 million people have a credit card, with the average card holder having a 14.7 per cent interest rate.
Australians also have an average balance of $1392 accruing interest, according to the latest Reserve Bank of Australia (RBA) figures.
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By switching credit cards, Australians could save an average of $100 per year, new research showed. A Current Affair
But by switching to a lower rate of 7.49 per cent, the average card holder would save $100 per year, or $1.1 billion nationwide.
Finder personal finance expert Amy Bradney-George said complacency was holding back credit card holders from making a switch and saving money.
"Once you get a credit card, it's easy to forget that there could be a better deal out there. But interest rates vary wildly, with some cards charging upwards of 24 per cent for purchases.
"There's also a wide variation in annual fees, which can cost you hundreds of dollars each year even if you pay off the card as you go.
Finder today announced the winners of its Credit Card Awards 2023, with analysis of more than 290 personal and business credit cards.
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Data from the Reserve Bank showed Australians are spending more on credit cards. Today
"The award winners all offer value within their categories, whether it's about saving money on rates and fees, taking a card with you when you travel overseas or earning points you can use to pay for travel and other rewards," Bradney-George said.
RBA data released earlier this year showed Australians are spending significantly more on credit cards than ever before as the cost-of-living crisis leaves people with less available cash,
Monthly purchases on credit cards reached a record $33.5 billion in January, marking a 17 per cent - or an extra $4.9 billion - increase on last year.
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If you or someone you know is in a hardship situation, you can call the National Debt Helpline on 1800 007 007 to get free financial counselling and support.
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