Amid an economic slowdown, an increasing number of households are resorting to "deferred payments"—paying taxes in credit card installments and rolling over a portion of credit card bills to the following month. In the third quarter of this year, more than 90% of the increase in tax-related credit card payments came from installment transactions.

While the balances of card loans and cash services have recently decreased, the revolving payment rollover balance has surpassed 7 trillion won. This trend reflects simultaneous efforts by households to distribute immediate financial burdens or postpone repayment timings.

According to an analysis of operational performance data from 8 specialized card companies released by the Credit Finance Association on the 27th, personal credit card installment usage for "national and local taxes" reached 3.5273 trillion won in the third quarter of this year, up 776.8 billion won (28.2%) from 2.7505 trillion won during the same period last year. In contrast, lump-sum payment usage rose by only 0.8% to 9.3721 trillion won. This means that the vast majority of the increase in tax-related card payments originated from installment plans.

The share of installments in total tax-related card payments also rose to approximately 27.3%, up 4.5 percentage points from about 22.8% a year ago. On a monthly basis, tax installment usage jumped significantly by 331.2 billion won in a single month, rising from 764.6 billion won in August to 1.0958 trillion won in September.

Although tax payments show large monthly fluctuations depending on payment schedules, the growth trend in installment usage was more pronounced than lump-sum payments over the entire quarter. This is interpreted as a rising demand to spread out inevitable expenses, such as taxes, over multiple months rather than settling them all at once.

A similar trend was observed in the repayment of credit card bills. According to the Credit Finance Association, the balance of payment-related revolving rollovers at the end of September stood at 7.0521 trillion won, an increase of 327.6 billion won (4.9%) from 6.7245 trillion won at the end of the same month last year. Compared to 6.8759 trillion won at the end of July, it increased by 176.2 billion won (2.6%) in just two months. Revolving is a method where only a portion of the credit card bill is paid, and the remainder is deferred to the following month or later.

Conversely, balances for card loans and cash services declined over the past two months. Card loan balances decreased by 455.3 billion won (1.1%), falling from 42.7957 trillion won at the end of July to 42.3404 trillion won at the end of September. Cash service balances also dropped by 407.9 billion won (5.8%) over the same period, from 7.0251 trillion won to 6.6172 trillion won. Compared to the end of September last year, all three categories showed year-over-year increases, but looking solely at the past two months, card loans and cash services moved in the opposite direction of revolving balances.

An individual examination of the eight specialized card companies showed that revolving rollover balances increased across the board at the end of September compared to the end of July. This indicates that the increase in deferred repayments is an industry-wide phenomenon rather than a temporary fluctuation at a specific card company.

As the economic slowdown and household financial pressures intensify, the surge in tax credit card installments and revolving balances exceeding 7 trillion won show that more consumers are postponing payments and repayments.

Analysts suggest that financial authorities' management of total household debt may have also influenced this trend. After financial authorities lowered the household debt growth rate management target to 1.5% in April, card companies began adjusting their loan issuances. Although the target was raised to 3% in August, industry insiders note that room for expanding loans remains limited. With loan access—such as card loans—restricted, demand for funds may have shifted toward payment-related revolving services, which are not subject to household debt management caps.

However, methods that delay payment timing can increase financial cost burdens instead of reducing immediate cash outflows. Revolving rolled-over amounts accrue fees, with applicable interest rates reaching up to around 19% per annum. When deferred bills are combined with the following month's card usage, the repayment burden can escalate. Tax installments may also incur fees depending on card company policies and terms of use.

"As economic polarization deepens, an increasing number of cases utilize revolving services instead of loans for liquidity, or choose installments over lump-sum payments even when paying taxes," a card industry official said. "While policy effects such as livelihood recovery consumer coupons temporarily reduced revolving balances last year, recent trends reflect household financial pressures directly in their credit card payment methods."

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