Cautious spending habits 'unlikely to change'

Friday 23 September 2011

Article by Mozo

Aussies are unlikely to forgo saving in order to start spending more money with their credit cards, according to recent analysis by the Reserve Bank of Australia (RBA).

Spending and savings habits 'unlikely to change'

Its half-yearly Financial Stability Review indicated that many households in the country are opting to pay down on their debt faster than they are required to.

"Net repayments on credit cards have picked up in recent months," it stated.

The review noted that household net worth has dropped recently following the volatility in global financial markets.

According to the RBA, "the prevailing mood of caution appears unlikely to lift in the near term".

The data showed that over the last 12 months, households saved 10.5 per cent of their net disposable income, which the central bank noted is a level unseen since the mid 1980s.

Despite this, earlier this month the Westpac-Melbourne Institute's consumer confidence index rose by 8.1 per cent, reaching 96.9 points.

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