The more important number for borrowers is not just spending, but what remains unpaid. The RBA reported $44.2 billion in total balances outstanding on credit and charge cards in May, including $21.5 billion in balances accruing interest. That means a large pool of card debt is still attracting interest charges, even as many households are trying to absorb higher living costs and elevated borrowing rates.

This story extends the broader trend we have been tracking: Australians are still using personal credit, but the type of credit matters. Credit cards may be convenient for short-term purchases, rewards and emergencies, yet they may become expensive if balances roll over from month to month. A structured loan may offer clearer repayments, a fixed end date and more predictable budgeting, but it is not automatically the right answer for every borrower.

For anyone carrying multiple balances, the key question is whether the debt is reducing or simply moving around. Consolidating card debt into one loan in some circumstances may make budgeting easier, but only if the new repayment is affordable and the borrower avoids rebuilding card balances afterwards. It is also important to compare the interest rate, comparison rate, upfront fees, monthly fees, early repayment rules and loan term before deciding.

The latest RBA data also shows a continued shift towards faster digital payments, with New Payments Platform transaction values reaching $253.4 billion in May. Faster movement of money can be helpful for wages, bills and transfers, but it also makes disciplined budgeting more important. Easy payments do not remove the need to plan for repayments before taking on new debt.

Before applying for credit, borrowers may wish to check their income stability, current commitments and the real cost of the loan over its full term. If the goal is debt consolidation, it can help to model repayments under different loan amounts and terms, then compare personal loans that suit the purpose rather than choosing purely on speed.

The takeaway is simple: card balances are not a problem for everyone, but interest-accruing balances deserve attention. A careful review now can help households avoid turning short-term spending into long-term financial strain.