Credit card debt still over $18 billion heading into silly season
08 Dec 2025
Credit card debt attracting interest charges eased slightly in the month of October, but still remains well over $18 billion in the lead up to the silly season.
Our analysis of RBA credit card figures, released today, shows the total debt accruing interest on personal credit cards recorded a slight 0.7% drop in October, after an unexpected spike the month before, but was still 5% higher than the same time a year ago.
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| Credit card debt accruing interest charges: personal cards | ||
|---|---|---|
| Amount | Monthly change | Year-on-year change |
| $18.3 billion | -$134 million
-0.7% |
+$840 million
+5% |
Source: RBA credit card statistics, October 2025, released 8 Dec 2025, original data terms, excludes commercial cards.
Spending remains elevated in October
The total value of credit and debit card transactions remained elevated in October at over $84 billion, up marginally from the month before, but noticeably higher than a year ago, increasing by $5.2 billion or 7%.
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| Value of card transactions: RBA | |||
|---|---|---|---|
| Amount – Oct 2025 | Monthly change | Change from 1 yr ago | |
| Credit cards – personal cards | $29.0 billion | +$110 million
+0.4% |
+$1.5 billion
+5% |
| Debit cards | $55.4 billion | -$105 million
-0.2% |
+$3.7 billion
+7% |
| Total | $84.4 billion | +$5 million
+0.0% |
+$5.2 billion
+7% |
Source: RBA credit card statistics, personal cards, Oct 2025, released 8 Dec 2025, seasonally adjusted data.
How to manage credit in the silly season
- Control your own destiny: Your credit card shouldn’t determine how much you should spend. Set yourself a strict budget you know you can afford to pay back.
- Keep the types of credit you use to a minimum: Paying for purchases across multiple platforms can make it hard to keep track of what is owed and when.
- Know your interest free days: Many rewards credit cards offer just 44 days interest-free but if you look closely, you’ll notice the words “up to”. That’s because it depends where you are in your billing cycle when you make your purchase, and it may end up being as few as 14 days. Make sure you can clear the debt before you get hit with interest charges.
- If you slip up, ask for mercy: If you get hit with interest charges, call your bank and ask for it to be waived. If it’s a one-off they might just say yes.
- If you get into real trouble – ask for hardship: Credit card providers and BNPL platforms have hardship programs to help you clear your debts.
- Watch out for overdraft fees: BNPL instalments typically come out automatically, which means if there isn’t enough money in your account, you could end up going into overdraft.
Canstar’s data insights director, Sally Tindall, says, “With over $18 billion in interest-accruing credit card debt, Australians are carrying a heavy burden into the most expensive time of the year.”
“While credit card debt attracting interest charges dropped slightly in October, it’s at the second highest level in over four years.
“At an average credit card interest rate now sitting at 18.67 per cent, that’s $9.4 million a day Australians are handing over to the banks in interest charges.
“Spending on credit and debit cards remains elevated, up seven per cent compared to last year. While this suggests households are more confident, the worry is that some will end up over-confident, leaving them with a debt hangover that attracts exorbitant interest charges well into the new year.
“If you do need to lean on credit in the lead up to Christmas, understand exactly how many days you will have to pay this money back before getting hit with interest charges, or in the case of BNPL, fees.
“While plenty of cards offer a maximum of 44 days interest free, don’t overlook the words “up to”. If you’re at the end of your monthly billing cycle it could be as few as 14.
“Also, know that if you have money owing on your card, your interest-free days are typically null and void, resulting in interest charges from the day after you bring your shopping home.”
Tips for shopping in the silly season
- Set strict spending limits. If it helps, put the money you want to spend in a separate account or as cash in an envelope. When it’s gone, that’s it.
- Keep money in the tank for the important things: Defaulting on your rent, your utility bills or your mortgage can have serious consequences. Make sure you have enough to cover these bills and essentials, such as food.
- Lean on your loyalty points: if you’re flush with rewards points but tight on money, consider using them to buy gift cards or presents instead. It might not deliver the greatest value for money, but if it means avoiding debt, it could well be worth it.
- Go green. Buy second-hand presents. Not only will it save you money – it’s also good for the planet.
- Set up a spending freeze in the heat of January. Get your spending back on track by setting a no-spend week, or even month, in January, where you commit to only buying essential items.
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
