Save
Bagging debt for a bargain: Online shopping impacting credit use
Australians are regularly relying on money they don’t have to make online purchases, a new survey has revealed.
Bagging debt for a bargain: Online shopping impacting credit use
Australians are regularly relying on money they don’t have to make online purchases, a new survey has revealed.
A CouriersPlease survey has found that online shopping has created more credit card debt for nearly one-third of credit card holders, with 30 per cent conceding that they accumulate more debt when shopping online, compared to in-store.
According to CouriersPlease, the debt might be explained by the fewer payment options that are available when shopping online.
The survey had revealed that an average debt of an Australian in more than four in 10 shoppers (42 per cent) use their credit card online, while a similar number use a debit card (40 per cent).
The remaining 18 per cent use payment plans such as lay-by or “buy now, pay later” services such as Afterpay and Zip Pay, it was also found.
A majority of Australians are also unable to, or unwilling to, pay off their credit card balance each month, the survey revealed.
Nearly half (43 per cent) pay off just up to 75 per cent of their balance each month, while 32 per cent are paying off less than 50 per cent of their credit card each month.
Even more worryingly, nearly one in five (17 per cent) are paying off less than 20 per cent of their balance each month.
Commenting on the findings, CouriersPlease spokesperson Jessica Ip said the research indicated “that online shopping transactions in Australia are more likely to have a more positive growth rate than with in-store purchase levels, with more people relying on credit and buy-now-pay-later services – essentially with money they don’t have – when making online purchases”.
nestegg has previously considered whether Australians’ Afterpay habits are making them poor.
About the author
About the author
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more
Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
