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Australians are using credit cards more than ever with utilisation reaching a record 30%, but in contradictory ways. The good: most are paying off balances monthly, keeping interest-accruing debt near record lows. The bad: total spending has hit $341 billion, up 39% over a decade. The ugly: the surge is driven by essential bills, not discretionary shopping. Device-not-present transactions (bill payments and online purchases) now make up 59% of all credit card spend, growing 16.2% annually, while online retail accounts for just 12% of that total. The real culprit? Soaring household costs, electricity up 21.5%, childcare, water, gas, and rates all above 5%, forcing Australians to charge the basics to credit.
New research reveals Australians have reached a financial crossroads, with credit card behaviour showing three distinct faces: masterful money management, record-breaking spending, and an alarming dependence on plastic for essential bills.
The good: Financial literacy under fire
Credit card utilisation has surged to an unprecedented 30%, the highest level ever recorded, yet balances accruing interest remain near record lows. Australians are using credit strategically, paying off balances monthly to avoid interest charges whilst leveraging cards to track spending and manage cash flow.
- 30% Credit card utilisation rate, highest level ever recorded
- $341 Billion Personal credit card spending (up 4.1% year-on-year, 39% over a decade)
- 59% Device-not-present transactions as a share of all credit card spend
- 16.2% Annual growth in device-not-present transactions
- $52.3 Billion Online retail spending to June 2025
- 21.5% Electricity inflation in 2025
The bad: Spending hits all-time highs
Credit card spending has reached record levels, with personal card spend hitting $341 billion, a 4.1% rise year on year and a 39% increase over the last decade. Across all credit cards, device-not-present transactions (bill payments and online purchases) have surged 16.2% and now account for 59% of all credit card spend.
The ugly: Bills are driving the crisis
The shift isn't about online shopping, it's about survival. Online retail reached just $52.3 billion in the year to June 2025, a mere 12% of total device-not-present card transactions over the same period. The real driver? Escalating household bills in a 'set and forget' approach.
Electricity inflation hit 21.5% in 2025, whilst childcare, water and sewerage, property rates, and gas all rose above 5%, well beyond general inflation. Australians are increasingly turning to credit cards not for discretionary purchases, but to cover the basics.
Australians are caught in a credit card paradox: they're using plastic more strategically than ever, maxing out limits but paying off balances to avoid interest, yet the reason they're relying on credit has fundamentally shifted. This isn't a shopping spree; it's a bill-paying crisis. With device-not-present transactions surging 16.2% while online retail accounts for just 12% of that spend, the numbers tell a clear story: households are charging electricity, childcare, water, and gas to credit cards because essential costs are rising faster than incomes. Electricity inflation alone hit 21.5%, with other household bills climbing above 5%, far exceeding general inflation. The fact that Australians are keeping interest-accruing debt near record lows shows financial discipline, but it also masks a troubling reality—many are living month-to-month, using credit cards as a cash flow buffer to manage bills they can barely afford to pay off. For policymakers, this is a warning sign: record credit card utilisation isn't a sign of consumer confidence or discretionary spending power—it's evidence that cost-of-living pressures are forcing households to rely on plastic just to keep the lights on.
