Credit card spending crunch

Economic Weather report

Domestic card spending slowed sharply in March, pressure from fuel, food mortgages

But, it's clear we can't pay off credit card balances before the 55day interest free period ended
Here's the first sign

Been falling since 2002 as borrowers worked out cheaper to borrow against your house than a credit card
But growth over 8% at 2 year high
Now interesting bit
How much of our the balance is interest bearing...ie how much are we late paying

This shows a big spike up in that percentage to over 71% from 68%
Biggest spike we have on record
Chart declining since 2002 again as we moved debt to cheaper home loans
But spike up indicates severe disposable income stress
Some paying mortgage from credit cards
Interesting that average credit card interest rate hit 19.9% in March
Highest in nearly 10 years

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[RockSprinkle]

i think this would help me with my year 11 economic exam next week. lol

thanks

[linuxluver]

Those figures confirm my own suspicions about how and why things I'm seeing in the property market right now are happening. With ages being relatively inelastic compared to other difficult times, the fal-out this time around will be in defaults.