A new debt clock that shows the credit card debt in Australia has been included on ASIC's MoneySmart website.

Australians have over $36 billion owing on credit cards where interest is being charged, an average of $4,700 per card holder. Credit card debt peaks in the first quarter of each year after Christmas spending.

MoneySmart’s Delia Rickard said, ‘People don’t always see paying off their credit card debt as a priority. In fact, paying off your credit card debt should be a top priority for millions of Australians. Pay off as much as you can afford, as quickly as possible.

‘If you have $4,700 credit card debt (the national average) and only make the minimum repayments, it will take 49 years to pay it off and cost you around $14,600 in interest. But if you are able to pay off $250 each month, you’d pay off your debt in two years and save $13,700 in interest.

At a typical interest rate of 15 to 20% the average person is paying around $800 in interest per year, much more than that for some people. Ms Rickard said, ‘There are a million things you’d rather spend $800 on than credit card interest. Start working off the interest now so you can spend that unseen money on things you really want.


‘I encourage everyone with credit card debt to go to the MoneySmart credit card calculator and see how much money they can save by paying off more than the bare minimum’, Ms Rickard said.


To try out the credit card calculator, go to www.moneysmart.gov.au.