High debt prompts credit card warning

Tim Blue

KEEP an eye on your credit cards this Christmas, in more ways than one.

Spending on cards will rise by close to 25 per cent in the Christmas period to top the $17 billion mark for the first time, according to research house Cannex.

The sheer scale of useage could generate headaches on repayments and increase the risk of theft or fraud simply from greater exposure.

Cannex said the country's 13.1 million plus credit cards will swipe about $1,300 each.

Cannex research analyst Garfield Wright said people spend up to 25 per cent more in December than they do for the other 11 months of the year.

“For the past three years, Australia's annual pattern of credit card usage has been predictable, with spending soaring in December as credit cards are well and truly given a workout,” Mr Wright said.

January, however, is a different story with consumers come to terms with the credit card debt that needs to be paid off.

“What is certain is that there will be a completely different kind of new year's resolution made this January and if a reshuffle of the cards is needed, there are 15 credit cards on the market offering zero interest on balance transfers and 106 offering under five per cent,” Mr Wright said.

MembersEquity Bank said it was encouraging members to be extra cautious when using cards.

Tony Beck, head of workplace business at Members Equity, said: "Credit cards are great for convenience, but criminals are getting smarter and the incidence of fraud is increasing.

“Consumers need to protect the security of their card and PIN to ensure they have ultimate control over their accounts."

In short:

- Memorise your PIN

- Never leave cards exposed to unauthorised accees

- Always watch a sales assistant swipe the card

- Get a receipt if the swipe fails and the purchase is cancelled

- Look out for unusual reader devices

- Keep all receipts.