By Jenny Awford For Daily Mail Australia Published: 02:25 EDT, 30 March 2016 | Updated: 03:40 EDT, 30 March 2016 Australia's credit card debt has exploded to a 'dangerous' level of $50.9 billion after consumers signed up for an extra 1.5 million credit cards in the past five years, according to new figures. The sharp rise has prompted experts to warn against splurging on credit cards to avoid paying crippling levels of interest. New Reserve Bank of Australia data shows that the debt accruing interest is as much as $32.3 billion - with an average of around $4,300 per card holder. This means that the standard card holder is paying around $700 in interest per year if their interest rate is between 15 to 20 per cent. New Reserve Bank of Australia data shows that the debt accruing interest is as much as $32.3 billion The figures show that Australians are paying a total of more than $5.5 billion a year of credit card interest. The number of credit cards held by Australians has increased by almost 10 per cent in the past five years, news.com.au reported. Data also shows that credit limits on cards have climbed even faster, up 4 per cent in just 12 months. They are expected to reach a staggering $150 billion for the first time this year. The sharp rise has prompted experts to warn against splurging on credit cards to avoid paying crippling levels of interest Experts have warned that using more than one credit card could result in more fees and debt problems spiralling out of control. Consumer finance specialist Lisa Montgomery said that many customers are getting new cards and keeping the old ones. 'The obvious danger is you can overspend and have got that temptation,' she said. The Australian Securities and Investments Commission's MoneySmart website also offers a range of advice. It suggests that people should 'stop adding more debt to your credit card' and 'pay more than the minimum repayment'. The site said that if you have $4,400 of credit card debt and only make the minimum repayments, it will take you 31 years to pay it off and cost you around $14,900 in interest. Advertisement
Australian credit card debt has surged to AUD50.9bn , with over $ 200 being paid in credit card interest alone . Furthermore , data reveals that credit limits on cards in the country have climbed 4 % in just six months . governments have warned against splurging on credit cards to avoid paying crippling levels of interest , and using more than one credit card , which may result in more fees and spiralling debt issues . This concludes our reports highlighting that US and UK credit card transactions are also heading for dangerous levels , fuelling concerns of credit bubbles .