Credit card use slows, balances rise

Credit card use slows, balances rise
transactions of credit cardsDespite another, normal, $140 million rise in the balances owed on credit cards in the three months to the end of November, transaction activity on these cards slipped into negative growth for the first time since the RBNZ published this data in December 1994. Card balance growth, year-on-year, was 5.5% whereas transactions fell on a seasonally adjusted basis by -0.8%. Card users are buying less, and taking longer to pay for it. In fact, the proportion of credit card balances incurring interest is holding steady at 70.4%. Last week, TSB announced a significant cust in its Visa interest rate, from 18.50% to 15.50% making it uniquely attractive for a card with an annual fee of only $18. This was followed by ASB lowering its standard credit card rate from 20.95% to 20.50%, and then later in the week ANZ from 22.20% to 20.90%. National Bank also lowered its base rates from 22.2% to 21.15%. You can get all the current credit card rates and fees on our Credit Card page here >>>      

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