Aussies reject credit cards to slash debt
Australians are increasingly forgoing credit cards in a bid to reduce debts, new research suggests.
An ING DIRECT financial well-being index has found that the average Australian household cut its credit card debt by 14 per cent in the final quarter of last year, news.com.au reported.
The result came as it was shown that the average household had cut the number of cards it holds from 2.1 in the third quarter of 2010 to 1.9 in the fourth quarter.
It was also shown that Victoria had been the most active state in cutting credit card debt, with average balances falling by 25 per cent.
According to news.com.au, the trend was attributed to consumer fears at the end of the year after November's official interest rate rise. This might also have encouraged some people to compare credit cards and consider switching to better, lower cost options.
"Households have become more and more compromised with cost of living pressures and that has been front of mind for them," commented ING DIRECT spokesman David Breen.
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