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The weakening trend in credit card spending continues, with Reserve Bank figures released yesterday showing that credit card balances grew by just 4.6 per cent in the 12 months to the end of August 2011. The annual rate of growth in card balances has now fallen in each of the past eight monthly periods.
Total credit and charge card balances stood at A$49.4 billion in August - down $41 million from the previous month. Balances have fallen for the past three months.
Average balances fell from $3312 in July to $3303 in August.
However, both the average credit limit and the average monthly spend were up. Credit limits rose from $9099 in July to $9101 in August, and spending rose from $1279 in July to $1436 in August.
According to analysis of the latest figures by MWE Consulting, credit cards made up 48.9 per cent of total card payments in August, while debit accounted for 39.5 per cent of card payments and charge cards accounted for 11.6 per cent.
Over the past three years, the credit card share of card payments has fallen from 53.7 per cent to 48.9 per cent. Charge card share has fallen from 12.8 per cent to 11.6 per cent over the same period.
Debit's share of card payments over that period has increased from 33.6 per cent to 39.5 per cent.
MWE's director, Mike Ebstein, said: "The current trends indicate that the gain by debit will continue for some time."
The total value of credit and charge card spending in the 12 months to August was $246.8 billion. This was $11.6 billion above the level of a year ago.