Consumers are falling back on credit cards and buy now pay later accounts to meet cash flow needs but credit card debt levels remain well below pre-Covid levels, according to new research. Credit bureau Experian reports that BNPL inquiries increased by 28 per cent over the 12 months to February and credit card inquiries grew by 31 per cent over the same period. Personal loan inquiries with the big four banks are up by 26 per cent. Experian said BNPL inquiries in February were the highest since November 2021. The latest Reserve Bank retail payments data show the A$25.9 billion of purchases on personal credit and charge cards in April was up 1 per cent on the previous month and up 8.6 per cent over 12 months. There were 282.5 million purchases on personal credit and debit cards in April – a record high for the series. Canstar finance expert Steve Mickenbecker said: “Interest rate increases are meant to slow spending but the record run of rate rises since May last year hasn’t put a dent in personal credit card spending.” Personal credit card balances accruing interest currently stand at $17.8 billion – an increase of 2.5 per cent over the past 12 months but still well below pre-COVID levels. Peter Drennan, research lead at Qi Insights said the data showed people were still spending strongly up to April, despite the rate rises. “And it is not yet raising debt levels. Balances accruing interest still remain at significantly low levels.” Debit card purchases of $46.2 billion were at a record level and increased by 18 per cent over 12 months.