Credit card debt accruing interest climbs to a 4 year high
10 Nov 2025
Credit card debt accruing interest climbed by $530 million in September, and almost $1 billion year-on-year, as Australians found it harder to stay on top of their debt payments.
Analysis of RBA credit card figures show the total debt accruing interest on personal credit cards has reached $18.4 billion, in original terms. This is the highest level of debt outstanding since July 2021.
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| Credit card debt accruing interest charges: personal cards | ||
|---|---|---|
| Amount | Monthly change | Year-on-year change |
| $18.4 billion | +$530 million
+3% |
+$999 million
+6% |
Source: RBA credit card statistics, Sept 2025, original data terms, excludes commercial cards.
Spending dips slightly after record high in August
The total value of credit card transactions fell in September by $323 million (-1%), in seasonally adjusted terms. However, this was on the back of record-high spending the previous month.
Overall, spending on both debit and personal credit cards increased $567 million (+0.7%) in the month and a substantial $4.2 billion (+5%) compared to the same time a year ago.
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| Value of card transactions: RBA | |||
|---|---|---|---|
| Amount – Sept 2025 | Monthly change | Change from 1 yr ago | |
| Credit cards – personal cards | $28.9 billion | -$323 million
-1% |
+$1.2 billion
+4% |
| Debit cards | $55.5 billion | +$891 million
+2% |
+$3.0 billion
+6% |
| Total | $84.5 billion | +$567 million
+0.7% |
+$4.2 billion
+5% |
Source: RBA credit card statistics, personal cards, Sept 2025, released 7 Nov 2025, seasonally adjusted data.
Paying the minimum is one of the biggest credit card traps
If someone with the average credit card debt was making just the minimum payment on the average rate of 18.61%, it would cost them an estimated $15,891 in interest charges and take almost 40 years to clear the debt. That’s not including the annual fee or any extra purchases they might put on the card.
However, if they were in a position to pay an extra $150 per month towards their bill, they could save an estimated $13,596 and clear their credit card debt in just 4 years and 3 months – that’s over 34 years earlier.
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| Time taken to pay off the av. credit card debt of $5,330 | ||
|---|---|---|
| Total interest charges | Time taken to repay | |
| Minimum repayments | $15,891 | 39 years, 1 month |
| Higher repayments (extra $150 per month) | $2,295 | 4 years, 3 months |
| Savings | $13,596 | 34 years, 10 months |
Note: Based on the RBA credit card statistics, original data. Average debt assumes 30% of accounts have debt accruing interest, and accounts for people with more than 1 credit card, based on a 2025 Canstar survey. Interest calculations are based on the RBA average rate of 18.61% and assume the minimum monthly repayment is 2% or $20.
Canstar’s spokesperson, Laine Gordon says, “It’s concerning to see credit card debt climbing back to levels we haven’t seen since July 2021 – a clear sign more households are leaning on plastic to get by.”
“Over the past year, credit card debt accruing interest has risen in eight out of 12 months, suggesting that some Australians are finding it hard to keep their heads above water as costs continue to rise.
“Spending on credit cards dipped slightly in September, but comes on the back of a record-high the month before. However, spending is still well up year-on-year – a sign some Australians are relying on credit to make ends meet.
“To make matters worse, RBA data shows Australians with credit card debt are being slugged with rates above 18 per cent on average. At those levels, it’s little surprise so many people are struggling to make a dent in what they owe.
“For people who feel stuck with ongoing credit card debt, looking for a low ongoing rate card can provide some temporary relief. There are seven banks with at least one rate under 10 per cent on Canstar.
“Paying the minimum payment is another trap to avoid. It might keep the wolves at bay in the short term, but in the long run, it can cost you thousands in interest and decades in debt.
“Even making small extra payments, where possible, can make a world of difference – chipping in an extra $150 a month could save you more than $13,000 in interest and clear the slate over 30 years sooner.
“Finally, remember you don’t have to tackle debt on your own. The National Debt Helpline is a great first step – it’s a free service that can connect you with a financial counsellor to help you put a plan in place and get the credit card burden off your shoulders for good.”
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
