Credit card spending up, balances down

Consumers are increasing their spending on credit and charge cards but continuing to reduce their account balances.

According to the latest Reserve Bank figures, credit and charge card spending fell by A$2.8 billion in April to $23.6 billion, compared with the previous month.

However, spending in April was 6.8 per cent higher than the same time last year.

The average account balance fell from $3214 on March to $3192 in April. Over the 12 months to April the average account balance has fallen 1.2 per cent from $3231.

Account balances accruing interest have fallen 4.6 per cent from $2190 in April last year to $2090 in the latest survey.

Over the 12 months, the average credit limit has increased 0.2 per cent from $9012 to $9030.