Credit card customers headed for interest pain as November spending hits record highs
15 Jan 2026
Australians put nearly $30 billion on their credit cards in November, a new record high, sparking fears pre-Christmas spending is now attracting credit card debt.
Canstar analysis of RBA credit card figures, released today for November 2025, shows credit card spending increased by more than three-quarters of a billion dollars ($757 million) compared to the previous month, the largest monthly increase since April 2023.
Spending on debit cards also hit a record high of $57.2 billion, taking the total across both personal credit and debit cards to over $87 billion in the month.
Value of card transactions in November (RBA)
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| Amount | Monthly change | Change – 1 year ago | |
|---|---|---|---|
| Credit cards – personal cards | $29.9 billion – record high | +$757 million + 3% | +$2.1 billion + 8% |
| Debit cards | $57.2 billion – record high | +$630 million + 1% | +$5.5 billion + 11% |
| Total | $87.1 billion- record high | +$1.4 billion + 2% | +$7.6 billion + 10% |
Source: RBA credit card statistics, personal cards, November 2025, released 12 January 2026, seasonally adjusted data.
Total debt hits $19.7 billion
The latest figures show Australians are paying off $19.7 billion in credit card debt, as reported by the RBA from larger banks.
While on paper this represents an increase of $1.4 billion between October and November, the RBA has reported a series break in the data from one of the banks. This increase therefore does not represent the change in credit card debt held by Australians between the two months.
Average credit card rate still above 18% yet there are still cards offering under 10%
While President Trump has proposed a 10% interest rate cap on U.S. credit cards, Australia already has caps on interest charges, to a degree. The law mandates that certain credit contracts, including continuous credit card contracts, cannot exceed fees and charges that total over 48%, however, banks are exempt from this.
RBA data shows the current credit card interest rate, of those being charged interest, is 18.52%, however, many rewards cards exceed 20%.
Despite these high averages, low rate cards do exist in Australia. There are currently six credit card providers offering at least one credit card with a purchase rate of under 10% on the Canstar database, including big four bank Westpac.
Credit cards with interest rates under 10% on the Canstar database
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| Provider | Card | Interest rate |
|---|---|---|
| Community First Bank | Low Rate Credit Card | 8.99% |
| Illawarra Credit Union | Low Rate Credit Card | 8.99% |
| MOVE Bank | Low Rate Credit Card | 8.99% |
| Westpac | Lite Card | 9.90% |
| Greater Bank | Visa Credit Card | 9.95% |
| Bank of Us | Visa Credit Card | 9.99% |
Source: Canstar. Terms and conditions and borrowing limits will apply. Excludes 0% cards that are fee-based instead.
Switching to a low-rate card could save hundreds
Canstar research shows if someone with a revolving debt of $5,000 switched from the average rate credit card at 18.52%, to a card with a rate under 10%, at 9.99%, they could potentially save $427 a year in interest charges.
Difference in interest: average vs low-rate card on $5k debt
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| Rate | Annual interest | |
|---|---|---|
| Average | 18.52% | $926 |
| Low rate | 9.99% | $500 |
| Difference | 8.53%-points | $427 |
Source: Canstar. Notes: based on a revolving credit card debt of $5k where interest is calculated daily and applied monthly. Assumes total balance includes interest charges from previous month.
Canstar data insights director, Sally Tindall, said, “Australians opened up the purse strings in November, sticking a record $87 billion on credit and debit cards combined.”
“The concern is, while shoppers were out there nabbing a bargain, if that purchase is still sitting on a credit card it could already have pivoted into an expensive mistake.
“RBA data shows Australians were lugging around $19.7 billion in credit card debt in November that was attracting interest charges, at an average rate of 18.52 per cent – that’s earning the card providers more than $10 billion a day in interest charges.
“While the change in reporting makes it difficult to say how this differs from October, it’s an amount that’s likely to rise in the months ahead as the toll from silly season spending kicks in.
“Anyone who hasn’t been able to clear their November credit card bill in full is now likely to be feeling the heat of interest charges, particularly if the debt is sitting on a high-rate rewards card.
“If that’s you, think about switching to a low rate card. While the number of lenders offering rates under 10 per cent are limited, they do exist and they could be a viable option to help limit the damage while you pay off your debts.
“At a time when every dollar counts, handing that extra money to your credit card provider makes little sense.
“Another alternative is to switch the debt to a personal loan. While the rates on these loans can vary depending on your credit score, they can often be a better solution for people who struggle with the temptation to spend.
“Personal loans typically force you to pay back the debt in full within a set timeframe without the ability to add to it, something credit cards don’t do.”
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
