Aussies wary of credit card debt, new figures show

By Mozo ·

Australians appeared to be increasingly wary of accumulating new credit card debt in the fourth quarter of 2011, new figures have suggested.

Data provider Veda has indicated that credit card applications were down by ten per cent over the three-month period when compared with the corresponding quarter in 2010.

Traditionally, Aussies have been keen to boost their spending power in the run up to the expensive Christmas period, but this trend was well and truly bucked last year.

Head of consumer risk at Veda Angus Luffman added that levels of borrowing had increased throughout 2011 until the final quarter.

"To see such a marked reduction in the use of credit by consumers in the period leading up to the Christmas holidays is unusual," he remarked.

New figures released by the Australian Bureau of Statistics appeared to reiterate this new cautious approach among Aussies, as spending was down by 0.1 per cent in December 2011.

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