Millions of Aussies turning to credit cards amid rising cost of living: survey

Millions of Aussies turning to credit cards amid rising cost of living: survey

More Australians are turning to credit cards to cope with the rising cost of living, new research has revealed.

The latest data from Finder found 15 per cent of surveyed Aussies had taken out a credit card in the last 12 months, while 7 per cent indicated they were in the market for one.

According to the findings, at least 6 per cent relied on credit to cover their daily expenses, and 5 per cent said they were looking for a credit card to pay off previous debt.

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Finder said the survey of 1063 was equivalent to three million Australians who have taken out a credit card in the last year.

“Credit cards have become a financial crutch for a lot of people who would have previously only used one for emergencies,” said Finder credit card expert, Amy Bradney-George.

“Mounting pressure on households is seeing Aussies borrowing money to keep afloat.”

The survey found 6 per cent of Australians were incentivised to use their credit cards for airline points, and three per cent did so for travel fees or insurance.

But of the generations, 10 per cent of Gen Y and 9 per cent of Gen Z were more likely to take out credit cards to deal with rising costs, than Gen X at 5 per cent.

“If you’re regularly spending more than you can pay off on a credit card, the cost of interest charges can quickly add up,” Bradney-George said.

“Every credit card has a different mix of features, so it’s important to understand what you’re looking for so you can identify the right card for you.”

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

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