As outgoing Reserve Bank boss Ian Macfarlane warns that rosy economic times can't last indefinitely, his bank's figures reveal that credit card holders are continuing to max out their cards.

Australia's nearly 13 million cards now carry on average $2000 more debt than a decade ago.

Banks and financial institutions are reaping a handy profit on the back of the staggering card binge. More than $26 billion of the total debt is interest bearing.

The bank's figures reveal that credit card use climbed in four of the six months to May. Figures are not yet available for June to August.
The recent rise in interest rates not only affects home mortgages but also credit cards. The 0.25 of a percentage point increase has added an extra $5.5 million a month to the national credit card interest bill.

Labor Treasury spokesman Wayne Swan said credit card use had taken off because of pressure on family budgets caused by inflation and rising petrol prices.

"Family budgets are stretched, so some families have no choice but to put the basics of life, like groceries and petrol, on the credit card," he said.
"The problem is you pay interest on credit card bills, so you pay extra on top of already rising prices."

Mr Swan said claims by Prime Minister John Howard that people were going into debt because times were good were plain wrong.
"They're not, they're going into debt just to keep their head above water," he said.

Concern over interest rates will heighten with the prediction yesterday by Mr Macfarlane that Australia's economic good times would come to an end.

Mr Macfarlane said interest rates had been too low between 2001 and 2004, which had fuelled the current high growth rate of the global economy.

The outgoing governor, who last week raised official interest rates to 6 per cent, said that interest rate levels were returning to "normal".
Mr Macfarlane leaves the Reserve in mid-September.