CREDIT CARD DEBT TO INCREASE WITH RISING PETROL COSTS

The sudden rise in petrol prices will have a dramatic effect on Australian credit card debt. With many consumers budgets now stretched even futher they are left with no alternative but to rely on their credit cards to cover the rising fuel costs.

Labor Treasury spokesman Wayne Swan said credit card use has increased because of the added pressure on family budgets caused by rising petrol prices and inflation.

“Family budgets are stretched, so some families have no choice but to put the basics of life, like groceries and petrol, on the credit card,” he said. “The problem is you pay interest on credit card bills, so you pay extra on top of already rising prices.”

There has been a dramatic increase in credit card use and it is unlikely to slow in the near future. Many consumers are unlikely to be able to meet the extra interest payments and will therefore increase their debt even further.

If must rely on credit cards you would be wise to make sure that your existing credit card has a low interest rate. There are many great low rate cards on offer now so this is one thing you can do to minimise your credit card charges.

The following websites offer great tools for online Credit Card Comparison for Australian Credit Cards. Visit Credit Card Comparison Australia or Credit Cards Comparison.