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Are you paying too much on your credit card?
Despite the COVID-19 pandemic leading to an increase in card usage and a greater propensity to save, Aussies are still unaware of their credit card’s interest rate, new research has revealed.
Are you paying too much on your credit card?
Despite the COVID-19 pandemic leading to an increase in card usage and a greater propensity to save, Aussies are still unaware of their credit card’s interest rate, new research has revealed.
A new poll by independent research agency fiftyfive5, commissioned by Defence Bank, found that 35 per cent of Australians don’t know their credit card interest rate, while those that do are still paying more than the lowest rate on the market.
While 25 per cent of Aussies are expecting to use their credit card more, 80 per cent of Australians who do not know their rate are paying more than 10 per cent on purchases, with some paying more than 20 per cent.
Defence Bank CEO David Marshall says the poll results give Australians a clear choice for 2021.
“It’s time to break the cycle of paying unnecessarily high credit card interest rates,” Mr Marshall said.
“We see from these results that Australians are frustrated by the rates they’re paying and the bells and whistles they either can’t use or don’t need.”
Mr Marshall also said the research shows that Australians are likely to add to their credit card bills during Christmas, with one in five finding it difficult to pay off their holiday spendings.
The CEO urged consumers who are paying too much for credit to look for a better rate.
“Australian consumers need to stop paying 20 per cent for the convenience of a basic credit card, when genuine low-rate options exist for half the cost,” Mr Marshall concluded.
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