Aussies reduce their grip on credit cards

People have been unwilling to take on too much credit card debt in recent months, as fears over the state of the economy continue to linger.

With the nation sitting on a total plastic debt of $36 billion, the government is desperate to see Aussies rein in their spending.

However, the new Commonwealth Bank (CBA) Business Sales Indicator has shown that levels of spending increased slightly across the country last month.

The index rose by 0.8 per cent in March when compared with February, which suggested that people have been using their credit cards more often.

CBA Local Business Banking executive general manager Matt Comyn said Aussies have been loosening the grip on their wallets in the last month or so and people have been particularly keen to pay for items and services in the amusements and entertainment sectors.

"It's a similar story in mail order and telephone order providers, where ongoing positive performance speaks to the smarter shopper who is seeking out a bargain," he remarked.

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