The total number of credit card accounts has fallen 7.6 per cent since 2021, while active accounts rose 6 per cent.

Nearly 1.5 million dormant accounts have been closed over the past three years, representing a 41 per cent drop in inactive cards.

Average annual credit card spending has increased to $34,500, up 22 per cent from three years ago.

"After the pandemic, people began consolidating and closing unused credit cards to improve their outcomes on new home loan applications when interest rates were high," said Money.com.au Research & Data Expert Peter Drennan.

Despite increased spending, balances accruing interest per active account fell 3.5 per cent.

Discretionary spending rose 3.2 per cent in the year to October 2024, outpacing inflation for the first time in six months.

Recreation and culture spending grew 1.5 per cent in October, indicating Australians are prioritising lifestyle despite economic pressures.

"Consumer confidence is growing, and it's another sign of economic recovery. Australians are showing they can use credit cards responsibly, and pay them off monthly while leveraging them for convenience and rewards rather than as a fallback for emergency debt," Mr Drennan said.

The Reserve Bank of Australia began publishing active credit card data in October 2024.