The latest Reserve Bank (RBA) credit card data for December 2020 shows a 25.59% in balances accruing interest (debt) from January 2020 to December, to a final debt of $21.2 billion. 

Over the coronavirus months, debt fell 23.9% - the small difference is due to a minor 0.95% increase in debt balances from November to December. 

However Australians still continue to close their credit card accounts, with the number of active accounts ending the year at 13.6 million: a 7% fall from the beginning of January. 



Meanwhile, spending on credit cards increased by 11% in December according to Citi's Credit Card Index, taking credit card spending back to near pre-covid levels. 

According to Head of Credit Cards at Citi Australia Choong Yu Lum, Australians are experiencing a 'debt hangover' after Christmas.

"This is in line with expected spend for January, as consumers typically tighten their belt following a period of increased spending due to Christmas and school holidays,” he said. 

“Many Australians were hoping for an uneventful end to 2020, and a fresh start in 2021. With lockdowns in NSW and QLD demonstrating some uncertainty is here to stay, it is pleasing that we still saw strong spend growth in December.

"While spend has dipped in January, we anticipate February spend will increase."

Overall, the number of credit card purchases increased 2% over the coronavirus months (March-December 2020) according to the RBA, implying that people continue to use them but are simply paying down their debts more. 

Previous data from the likes of illion and Citi pin this on the likes of superannuation withdrawals and stimulus payments going to debt-heavy Aussies. 

Debit cards may also have something to do with it, with the number of debit card purchases rising by more than 14% throughout 2020. 

Buy now pay later (BNPL) services could also be having an impact, albeit a smaller one. 

Based on the latest figures, Afterpay has roughly 3.4 million active customers in Australia while Zip and Humm have about 2.5 million each. 

Openpay and Klarna, two smaller BNPL providers, also posted customer gains of more than 100%


The table below displays credit cards with some of the lowest interest rates on the market, disregarding any temporary promotional offers.

Credit card

N/A0[Minimum credit limit : $1, 000 Card replacement fee (Australia) : $15 Apple Pay, Google Pay, Samsung Pay, ]0015$product[$field["value"]]15.49VisaMore details
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G&C Mutual Bank Low Rate Visa Credit Card

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    N/A0[Apple Pay , ]00$product[$field["value"]]$product[$field["value"]]8.99VisaMore details
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    Easy Street Financial Services Easy Low Rate Visa Credit Card

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      N/A0[Low ongoing variable interest rate 0% p.a. on balance transfers for 12 months. Same ongoing rate for retail purchases, cash advances and balance transfers Up to 55 days interest free. Additional card available for $0. Minimum credit limit $500 Low annual fee of $40. Half the annual fee ($20) donated to the McGrath Foundation every year you hold the card. Choose a credit limit from as little as $500 and up to $15, 000. Access to the worldwide Visa network. Replacement of Visa card (within Australia) $12.50 Replacement of a Visa Card (overseas) $55 Apple Pay, Android Pay, Google Pay, Samsung Pay, ]0025$product[$field["value"]]8.99VisaMore details
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      Community First Bank Low Rate Pink Credit Card

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        N/A0[Up to 58 days interest-free credit. Competitive low interest rate on purchases Low annual fee of $39 - waived if you make purchases of more than $8, 000 a year. Accepted at more than 24 million outlets worldwide - just look for the VISA symbol. Can be linked with up to two other Bank of us accounts ensuring you only have to carry the one card. Option to make balance transfers from existing cards - treated the same way as a purchase with up to 58 days interest free. Minimum credit limit $500, ]0020$product[$field["value"]]9.99VisaMore details
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        Bank of us Visa Credit Card

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          N/A0[Minimum Credit Limit $1, 000 0% interest on balance transfers for 12 months Apple Pay, Google Pay, Samsung Pay, ]0020$product[$field["value"]]11.8VisaMore details
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          Heritage Bank Visa Gold Low Rate

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            N/A0[Apple Pay, Google Pay, Samsung Pay, ]00$product[$field["value"]]$product[$field["value"]]19.99MastercardMore details
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            Bendigo Bank Bright Credit Card

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              Important Information and Comparison Rate Warning

              All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 21, 2025. View disclaimer.

              Important Information and Comparison Rate Warning

              Cash still being phased out? 

              The trend of fewer and fewer people using cash - exacerbated by COVID due to hygiene fears - continued through to the end of the year. 

              The number and value of cash-out transactions with debit cards plummeted by 32% and 26% respectively in 2020. 

              Cash advances with credit cards fell in use by 22.7% in the year also, and almost half of this (-10.52%) was from March onwards (many people stopped using cash already before lockdowns in February). 

              The value of these cash advances fell by 20.37% to $427 million in total. 

              Image via QuoteInspector.com