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Australian Shoppers On Course To Balance Their Finances In The New Year
RBA Figures Indicate That Repayments Set To Match Spending On Credit Cards After The Holiday Season
MasterCard Worldwide Helps Australians Manage Personal Finances With Budget Basics Online Consumer Education Program
Sydney, 10 January 2008 - Latest figures from the RBA show that Australians are using their credit cards responsibly, countering many of the myths around the use of credit cards and their impact on household debt in Australia.
The attached chart pack shows that Australians are demonstrating strong financial management:
Chart 1 shows that there is an incredibly close correlation between total credit card spend (in yellow) and total credit card repayments (red).
Chart 2 shows average account balances (in yellow) and average balance accruing interest (in red). The difference is the up to 55 day period where card holders can use their card without paying interest. At the end of October 2007, the average account balance was $2,993 and the average amount accruing interest was $2,135 – a difference of $858.
Chart 3 shows that since mid 2000 credit card debt accruing interest as a percentage of total household debt has been around just 5 per cent and fluctuates only with seasonal spend changes.
Strong Financial Management During The Holiday Season
To further underline consumers' awareness of financial management; according to the recently released MasterCard Worldwide Holiday Shopping Insights Report™, Australians chose to spend more of their money this year on ensuring they have a memorable Christmas with family and friends, rather than exchanging luxury gifts.
The Insights Report also found that Aussies planned to head to the stores to create a lavish spread for family and friends over the holiday season, compared with consumers in most of the other countries around the world who planned to buy luxury gifts and gadgets.
When asked what Australians planned to spend most of their money on over the festive season, 22 per cent said that it would be food and drinks compared to just seven per cent of Americans, who opted for presents such as clothes, toys, books, CDs and DVDs.
The Insights Report showed that Australians were looking to manage their money responsibly during the holiday season. 55% of Australians polled intended to set a budget for holiday shopping to ensure that they entered the New Year with their finances under control.
MasterCard Worldwide Launches Budget Basics Campaign
As Australia enters 2008, MasterCard Worldwide in Australia has launched a new campaign to encourage Australian consumers to get their finances back on track after Christmas spending with the free online consumer education program Budget Basics.
The Budget Basics website (www.budgetbasics.com.au), is designed to give Australians access to easy-to-understand information to help manage finances.
The campaign, which will continue throughout the New Year, was launched in major daily newspapers across the country in the lead up to Christmas and was designed to help consumers bring in the New Year with their finances under control.
“We all want to focus on the Christmas spirit with our family and friends during the festive season. But it is important to be mindful of managing your money and start the New Year with your finances under control,” said Leigh Clapham, executive vice president, Australasia, MasterCard Worldwide.
“With the help of Budget Basics and careful and managed planning, it is easy to create a personal financial plan to take you into a prosperous 2008,” Clapham added.
The online resource provides useful advice for consumers, including 10 top ways to tackle debt, as well as advice on spotting debt warning signs, and how to effectively manage debt.
The site is not only limited to those that need assistance with their current financial position, but also aims to educate young Australians about positive financial habits.
“Ensuring young Australians understand how to budget will significantly improve their financial position in later life,” said Clapham.
MasterCard Worldwide is dedicated to providing consumers with innovative credit and debit products to suit differing financial needs, and is committed to ensuring there is enough information available to educate Australians on how to best to use these products.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 16 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com. Contacts:
Melissa Devine, 02 9818 0950, mdevine@ppr.com.au
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