Around one million people in Australia only ever make the minimum interest payments on their credit card balances, according to a survey of 2000 consumers by market analyst Datamonitor.
The survey found that while most people use their credit cards as a convenient payment tool, around a quarter regularly make purchases they wouldn’t otherwise be able to afford using credit.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
Almost 18% of consumers reported paying interest every month, while 9% – which equates to around one million people – admitted they can only manage to pay the minimum required on the cards each month.
When asked how respondents felt about their credit limit, 8% of credit card customers in the survey said they felt their credit limit was too high because it tempted them to overspend.
As for what attracts consumers to a particular credit card, by far the most significant factor cited were low fees, with 86% saying that was their main criterion for selecting a card, ahead of interest rates (54%) and an attractive reward program (47%).