Figures from the Reserve Bank of Australia also show the total amount spent on credit cards grew by 9.6% to $18.78 billion, up from $17.13 the previous month.

The data suggests the government stimulus bonus may have prompted both increased consumer spending and increased debt repayments.

The total number of credit cards rose by 11,000.

But it's not all good news.

Although the total balances decreased by one percent, the total of balances accruing interest rose to $32.69 billion in March, up from $32.65 billion the previous month. That means the proportion of balances lapsing past interest free periods (or made on cards which do not offer an interest free period) increased.

The value of cash advances also grew sharply to $1.034 billion, up from $963 million the previous month - an increase of 9.7%. In previous months, the value of cash advances had been steadily decreasing. Cash advances attract higher interest rates and are not subject to interest free periods.

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