Credit card balances are rising as savings buffers dwindle and cost of living pressures continue to mount. According to the latest Reserve Bank payments data, balances accruing interest on personal credit and charge cards rose from A$17.4 billion in December to $17.5 billion in January. After hitting a 20-year low of $16.8 billion in September, balances rose by 4 per cent over the following four months. A feature of the COVID lockdown period was consumers’ determination to pay down their credit card debt. Rising interest rates and high inflation have put an end to that. Over the period that balances have been rising, spending on personal credit and charge cards has fallen – from a recent peak of $27.5 billion in November to $27.4 billion in December and $25.1 billion in January. A drop in card spending in January is a normal seasonal variation. Purchases on debit cards were also down in January but the $43.9 billion of purchases was consistent with monthly spending throughout most of 2022.   Cash withdrawals from ATMs were worth $7.9 billion in January, down from $9.5 billion in December.