Card spending hits record-high in January as debt edges towards $20 billion
09 Mar 2026
Australians kicked off the New Year with record credit and debit card spending in January, as debt attracting interest ticked up to $19.62 billion.
Our analysis of the latest RBA credit card figures, released today for January 2026, shows Australians spent a record $30 billion on credit cards during the month, up 4% from December.
Debit card spending also climbed to a record high of $58 billion, taking total card spending from households to $88.2 billion in January.
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| Value of card transactions in January (RBA) | |||
|---|---|---|---|
| Amount | Monthly change | Annual change | |
| Credit cards – personal cards | $30.0 billion record high | +$1.12 billion +4% |
+$2.21 billion +8% |
| Debit cards | $58.2 billion record high | +$188 million +0.3% |
+$5.17 billion +10% |
| Total | $88.2 billion record high | +$1.3 billion +2% |
+$7.38 billion +9% |
Source: RBA credit card statistics, personal cards, January 2026, released 9 March 2026, seasonally adjusted data.
Credit card debt stings at tail end of holiday season
The latest RBA figures show Australians are carrying $19.62 billion in credit card debt that is attracting interest, as reported by the RBA.
That balance grew by $45.5 million in January, as households faced the combined pressures of holiday spending and the return to work and school.
Note: year-on-year analysis not available due to a series break in the data in November 2025.
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| Credit card debt accruing interest charges: personal cards | |
|---|---|
| Amount | Monthly change |
| $19.62 billion | +$45.5 million +0.2% |
Source: RBA credit card statistics, January 2026, released 9 March 2026, original data terms, excludes commercial cards.
Impact of runaway interest bills
Only making the minimum repayments is one of the biggest credit card traps households can fall into, particularly with interest rates sitting at an average of 18.62%.
Our analysis shows making only minimum repayments on a $5,000 credit card balance could see a cardholder pay $14,786 in interest over 38 years before the debt is cleared.
If the person switched to pay $250 a month, instead of 2% of the balance, as typically required by credit card providers, the interest bill drops considerably to $921 and the debt can be paid off in just two years.
How to get out of credit card debt
- Switch to a low rate card: There are 5 providers on the Canstar database with rates under 10%.
- Switch to a personal loan: The average variable rate for a personal loan is currently 8.11% (RBA).
- Switch to a 0% balance transfer: This can buy you time, however, fees apply, plus higher revert rates if the debt is not cleared in the honeymoon period.
- Review and switch other bills: Switch your other costs (electricity, internet, phone, even cheaper brands at the supermarket) and redirect savings towards credit card debt.
- Tackle the highest rate debt first: Focus extra payments on the card or loan with the highest interest rate. This method typically saves the most interest over time.
Canstar’s data insights director, Sally Tindall, says, “January shows Australians went all out on summer spending, reaching new record levels on both credit and debit cards.”
“This data will have the RBA worried. When households were hitting the shops in full force in November, the thinking was that many would make cutbacks in the New Year. Looking at the latest figures for January, this hasn’t come to fruition.
“For those still lugging around Santa-sized sacks of Christmas debt, it’s time to take action.
“Switching a typical debt from an average-rate credit card to a card or personal loan that charges under 10 per cent could save hundreds of dollars in interest a year. Just be mindful of any fees or rules that come with switching to a new account.
“If you have debts you’re struggling to clear, hit pause on all discretionary spending. While this may seem extreme, the faster you clear the debt, the better you’re likely to feel.”
This article was reviewed by our Deputy Finance Editor Alasdair Duncan before it was updated, as part of our fact-checking process.
