Credit card debt falls to record low

Credit card debt among Aussies fell by a record amount in July as cautious consumers looked to consolidate debt and reign in spending.

Figures from the Reserve Bank revealed that there was a decline in the amount owed by those with plastic of $28.50, taking the average down to just $3,311.80.

Year-on-year, the average credit card balance increased by 1.5 per cent, despite the number of accounts rising by 1.9 per cent.

However, CommSec analysis of the data revealed that while Aussies appeared to be reluctant to borrow money to make purchases, they were increasingly keen to buy goods with their own funds.

The amount spent using debit cards was up 18.9 per cent over the course of the year as consumers appeared to show signs of becoming more careful with their budgets.

Last month, adviser with Castellan Financial Consulting Bruce Brammall told the Herald Sun that couples need to be particularly vigilant with regards to their money as they may have two sets of bad financial habits to reign in.

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