Plastic puts big debt in Aust. pockets

Press, 22 July 1986, Page 10

Plastic puts big debt in Aust. pockets

NZPA staff correspondent Sydney

Australia’s credit card debt amounts to sAust33o ($392) for every man, woman and child — a total of sAusts billion ($5.95 billion). Experts believe it will soar under new plans by the main card in Australia, Bankcard. Banks in Australia have agreed to allow Bankcards to be used as either credit or debit cards drawing off cheque or savings accounts, but the Australian Federation of Consumer Organisations warned yesterday

that the move would increase family debt dramatically. The new provisions virtually allow users a double bite. Consumers can first use money in their bank accounts for electronic debiting when shopping, then switch to credit when the money runs out. The federation’s assistant director, Roland Everingham, said the Government had already been warned of the increasing indebtedness of families and households, which the federation linked to the rise in the use of the

plastic cards.

“This development makes it all the more urgent that the Federal Government act to prevent the social damage being done by the new financial technology,” he said.

“More than $5 billion is currently owed on plastic money — an average of $330 for every man, woman and child in Australia.

“When personal loans, mortgages and the like are added in, it must be agreed that we are a nation in debt,” he said.