Debit card share continues to grow

Credit card spending and account balances both showed further weakness in February, according to Reserve Bank of Australia figures released on Friday.

The average credit and charge card balance fell three per cent, from A$3364, in February 2012, to $3281 a year later.

The average balance accruing interest in February stood at $2354 - down four per cent on a year earlier.

CommSec economist Savanth Sebastian said in a report that the average card limit was growing at the slowest pace for 18 years.

The total value of credit and charge card purchases fell 0.7 per cent, from $20.3 billion, in February 2012, to $20.2 billion a year later.

Card-holders spent an average of $16,629 on credit and charge cards during the 12 months to February. There was no growth in spend per card.

In contrast, the value of debit card purchases rose eight per cent over the same period.

The principal of MWE Consulting, Mike Ebstein, said debit now accounts for 41 per cent of purchases made with a card, which is up from 39 per cent a year ago.