Credit card debt 'is falling'

Mozo

Tuesday 15 March 2011

Aussies are becoming less willing to rack up substantial debts on their credit cards, according to one writer.

Credit card debt 'is falling'

In an article published by the Age, Ross Gittins noted that individuals have "adjusted to a live of easily obtainable credit".

He cited figures indicating that in the year leading up to February 2011, the average credit card debt increased by less than one per cent.

This contrasts with figures from June 2007 when the average outstanding debt rose by upwards of 11 per cent.

"We seem to have gained a little more self-control when it comes to wielding our credit cards," he observed.

Overall, personal debt in Australia grew by only two per cent in the twelve months leading up to January 2011.

Aussies who still struggle to be disciplined with their plastic might consider going online to compare credit cards with lower limits.

Loren Baxter, writing for Lifehacker, said choosing one that only allows a user to spend $1,000 could help reduce the chance that large debts will be racked up.

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