This podcast interviews Rachel Wastell, a personal finance expert, about a decade-long analysis of Australian credit card usage and the rise of Buy Now Pay Later (BNPL) services. The analysis reveals Australians are making smaller credit card transactions and carrying less debt that accrues interest, a 45% decrease over 10 years. However, this decrease might be offset by increased BNPL debt, which lacks comprehensive tracking and regulation. The credit card market shows polarization, with a significant drop in mid-range cards and a rise in both low and high-interest cards, suggesting banks are adjusting to changing consumer behavior. Listeners are advised to carefully compare credit card interest rates, annual fees, and rewards programs before choosing a card, and to be mindful of the potential hidden debt associated with BNPL services.
