Aussies ditch credit cards, warm to debit

As the recession bits, Aussies are growing more cautious towards credit card debt and are paying for items on debit cards instead, one of the bosses at MasterCard has claimed.

Speaking at a recent credit card industry conference, said that switching credit cards for debit is becoming increasingly popular.

However, Business Day reports that for many Australians, cash is still king.

"We are currently still a cash-dominated society, where 70 per cent of all payments in the retail environment are done by cash," he said, adding that there will be a slow move to credit cards and debit cards as people grow more comfortable with paying on plastic.

The company is working on pre-paid credit cards and other products to help create a market that has something to offer everyone.

Earlier this month, the Reserve Bank reported that credit card debt hit a record $45.4 billion in February as fewer people were able to afford to make repayments

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