Moving from the mineral world to the world where you try and get rich buying things, will it be paper or plastic? Plastic!
Australians made $17.9 billion worth of purchases using their credit cards, according to Reserve Bank figures released yesterday. The total number of purchases using credit increased by 17% for the month. The number of cash advances—where the interest rate is usually higher—also increased by about 15% to over $1 billion.
On the flip side, credit card payments were $18.8 billion in October, a 14% increase from the month before. And this is good news, According to CommSec economist Craig James. “It’s clear that Australians are using their credit cards more often but more wisely. The conventional wisdom is that consumers are drowning in a sea of credit card debt. But the evidence is totally to the contrary.”
It’s certainly good that Aussies are paying off what they’ve borrowed. But if you’re borrowing to make ends meet, or to live a lifestyle which the TV teaches you to be accustomed…well that’s a problem. No one has ever spent their way to wealth, at least not that we know of.
Markets and Money