Sparkra

Credit card spending has reached record levels as the cost-of-living crisis hits Australian pockets, with warnings about how people could fall into a debt spiral if they keep using their plastic.

Monthly purchases on credit cards reached a record high of $33.5 billion in January according to data from the Reserve Bank of Australia (RBA).

That’s a “whopping” increase of 17 per cent in the past year, representing an extra $4.9 billion on Australian credit card bills.

With one in two Australians experiencing financial stress, there are a growing number of people turning to their credit cards to pay for things they don’t have cash for, according to Finder credit card expert Amy Bradney-George.

“As prices continue to rise, consumers are depending on credit cards more – including to pay for essentials like food and utilities.”
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Cost of living causes ‘credit card crisis’ Credit card spending has reached record levels as the cost of living crisis hits Australian pockets, with warnings about how people could fall into a debt spiral if they keep using their plastic.

Female university graduates in Australia are earning less than men while racking up more debt from their degrees, new research reveals.

The Futurity Investment Group’s university debt report, which surveyed more than 1,000 Australian graduates, found 70% of males earned more than $60,000, compared with 59% of women. Men were also more likely to be earning more than $100,000 (35% compared with 21% of women).

At the same time, nearly half (46%) of female graduates finished university with a Hecs (Higher Education Contribution Scheme) or Help (Higher Education Loan Program) debt of between $20,000 – $50,000, a rise of 14% in three years and slightly higher than men (43%).

Kate Hill, an executive at Futurity Investment Group, says the type of courses that have higher proportion of women tend to lead to lower paying professions, despite the cost of education being similar to other degrees.
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Female university graduates have bigger Hecs debts but earning less than men, research reveals Average student debt balance has risen 10% and taking longer to pay off, affecting major life events such as starting a family

Tuesday's 10th successive Reserve Bank interest rate hike is the culmination of a process that has added $1,080 to the monthly cost of payments on a $600,000 variable mortgage.

I've calculated this increase in payments — which amounts to $12,960 per year — by comparing payments on the National Australia Bank's base variable mortgage rate before the Reserve Bank started its series of hikes in May 2022 with payments after the NAB lifts its rates in accordance with Tuesday's decision.

And Tuesday's statement from the Reserve Bank indicates there's more to come.

But an end to these rate rises is within sight — possibly as soon as mid-September.
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The RBA's final few words offer the best clue on what happens next with interest rates The Reserve Bank's statement indicates there aren't too many rate rises left. And history suggests those hikes could come to an end by early spring, writes Peter Martin.