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Some individuals mentioned that they hadn’t examined their credit card for over a year, while 45 percent of respondents took a closer look within the past year.
Research from Canstar revealed that Australians collectively paid over $3.4 billion in interest on credit cards, with the average interest rate exceeding 18 percent on total outstanding debt.
The study highlighted that this collective financial burden could have been slashed nearly in half if those in debt had switched to credit cards with interest rates of 10 percent or lower, potentially saving approximately $1.6 billion altogether.
Sally Tindall, Canstar’s Director of Data Insights, noted that there is a financial consequence for neglecting regular reviews of credit card terms.
“Australians are losing a staggering $1.6 billion annually in unnecessary interest due to loyalty to their current credit cards,” Tindall stated.
“Canstar research shows one in three cardholders have never reviewed their credit card.
“In a market where rates range from 8.99 per cent right up to 28.49 per cent, that’s like handing your bank your wallet and hoping for the best.
“Australians paid an estimated $3.4 billion in credit card interest last year, yet, if the average rate dropped to just 10 per cent, then the bill could have been almost halved.”
The latest data from the Reserve Bank of Australia found banks raked in almost $1.59 billion in credit card fees for the financial year ending 2024.
This was up 11 per cent from the previous financial year.
Tindall recommended Australians review their credit cards every year.
“No matter which card you land on, diarise a health check on your card every 12 months,” she said.
“Check your rate, your fee and actually calculate what your rewards are worth.
“If the value of your points doesn’t outweigh your interest and fees, the card is costing you and it’s probably time to ditch it.”
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