The battle to pay off the growing credit card bill has become as onerous as meeting the mortgage.
The average Australian now owes about $2771 on each of their cards.
The fascination with plastic has driven card debt to almost $36 billion.
The interest rate rise, expected to be revealed today, will add to homeowners' woes.
The move of rates to 6 per cent will primarily effect mortgages, but repayments on personal loans and credit cards will also rise.
Calculations show people who make just the minimum monthly payment on their plastic debt could almost pay off a mortgage faster.
Cannex media analyst James Lynch said the rate rise would add about $95 to the total amount of interest paid for the average debt (rounded up to $3000).
It will take almost two months longer for the debt to be settled.
At the top end, a card $10,000 in the red will cost $368 more to pay off and an extra five months.
The figures do not take fees into account.
The average credit card interest rate is 16 per cent and will grow with the rate change.
"It's scary that a $7000 credit card debt could take longer to pay off than a mortgage," Mr Lynch said.
"People should avoid making just the minimum repayments."
Repayments for the average home loan will rise by $35 from today.
Coupled with fuel and the May rates decision, homeowners are spending about $100 a month more just for basics.
source: Herald Sun
The average Australian now owes about $2771 on each of their cards.
The fascination with plastic has driven card debt to almost $36 billion.
The interest rate rise, expected to be revealed today, will add to homeowners' woes.
The move of rates to 6 per cent will primarily effect mortgages, but repayments on personal loans and credit cards will also rise.
Calculations show people who make just the minimum monthly payment on their plastic debt could almost pay off a mortgage faster.
Cannex media analyst James Lynch said the rate rise would add about $95 to the total amount of interest paid for the average debt (rounded up to $3000).
It will take almost two months longer for the debt to be settled.
At the top end, a card $10,000 in the red will cost $368 more to pay off and an extra five months.
The figures do not take fees into account.
The average credit card interest rate is 16 per cent and will grow with the rate change.
"It's scary that a $7000 credit card debt could take longer to pay off than a mortgage," Mr Lynch said.
"People should avoid making just the minimum repayments."
Repayments for the average home loan will rise by $35 from today.
Coupled with fuel and the May rates decision, homeowners are spending about $100 a month more just for basics.
source: Herald Sun
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