New data from the Reserve Bank of Australia (RBA) has revealed that Australians paid down a total of $5.5bn in credit card debt since the start of COVID-19.
In addition to this 20% reduction in debt, nearly half a million credit card accounts were closed over the four month period.
One of the few positivesfrom the COVID-19pandemic is that credit card debt is being kicked to the curb, said Sally Tindall, research director atRateCity.com.au.
Credit card debt is one of the worst types of debt, with interest rates climbing as high as 24.99%. Getting rid of it will free up space in the family budget before the governmentscales back COVID relief payments.
The statistics are also promising when looked at year-on-year, with debt accruing int…
Read the full article at: https://www.brokernews.com.au/news/breaking-news/credit-card-debt-plummets-by-20-over-covid-273200.aspx
