Survey reveals Australians survive on credit cards

Media release 13 November, 2007
AUSTRALIANS SURVIVE ON CREDIT CARDS
90% still rely on credit cards and put up with heavy fees and surcharges Australians are struggling to make their money last from month to month, with over half of Australians admitting to using their credit cards to get them between pays, a survey by NEWS.com.au reveals.
Cardholders are being stung with fees and charges and they are not happy about it, with many people ditching their cards for cash payments to avoid fees.
The survey revealed more than 90 per cent of respondents had at least one credit card with 36 per cent having two, and half of those with credit cards have been stung by penalty fees or interest rates in the last 12 months.
Conducted by CoreData in partnership with NEWS.com.au, the national survey of 1366 respondents conducted during October also found:

• Over half of all cardholders (54 per cent) use their credit card to get them between
  pays.
• Most respondents (84 per cent) feel ripped off by their credit card company, home
  loan supplier or transaction account institutions when they fail to make payments and
  incur fees and charges, and 64 per cent wanted to close off their account as a result.
• Not all consumers are full informed about their credit cards with nearly one third of
  cardholders (32 per cent) not sure of the interest rate on their credit card. A similar
  amount (34 per cent) admit to being unsure of the fees and charges they might incur
  in the event of a late payment
• However more than three quarters (78 per cent) know how many interest free days
  they have on their credit card
• One out of every three card holders who incurred fees and charges did something
  about their situation - the majority of these people complained to the organisation (70
  per cent) and nearly half demanded a refund (47 per cent).
• More credit card or transaction account holders were charged late fees and interest in
  the past 12 months compared to home loan buyers.

“What these findings reveal is that credit card holders are concerned about surcharges and penalty fees, however a lot of them are still unaware of the interest and fees they will be slugged with, ” NEWS.com.au business editor Nicki Bourlioufas said.
“An increasing number of merchants are using surcharges on credit card payments to recoup costs they incur in credit-card transactions. Therefore knowing what you are signing up for and the pros and cons of having a credit card is something consumers need to get a handle on” she says. “Having said that, it is promising to see that more than one third of consumers who incurred fees and charges in the last 12 months did something about their situation.”
NEWS.com.au also today officially launched its new MONEY section, which offers a unique and trusted guide designed to educate and guide people through decisions they will make in their lives when it comes to money management and investment.

About NEWS.com.au:
NEWS.com.au is the flagship brand for News Limited’s digital business, News Digital Media. NEWS.com.au provides its readers with engaging and highly interactive latest news and information across entertainment, business and travel from both an international and national perspective.
NEWS.com.au also provides readers with easy access to News Limited masthead sites for the best coverage of local and state news, along with, Australia’s leading online sport site. NEWS.com.au not only provides a daily news source but also delivers rich and detailed articles, along with a variety of blogs and user generated forums. NEWS.com.au also give readers access to a variety of useful tools,
including travel search through Bezurk.com, activity search through GoDo, movie and gigs guides, currency converter, savings calculator, credit card selector, property loan calculator and company research. NEWS.com.au registered over 2.9 million unique browsers for the month of October
2007 (Source NNR - Market Intelligence News and Weather Category
Domestic October 2007) and an annual growth rate of 91% (Source NNR - Market
Intelligence News and Weather Category Domestic October 2006 - October 2007).