Credit card use to slow as dollar weakens?

By Mozo ·

Aussies shoppers may be less likely to use their credit cards in the coming months as the dollar has started to weaken and slip back into parity with the US dollar.

Over recent months, people have been more inclined to book holidays abroad and shop online as they take advantage of the attractive exchange rates, reports the Australian Associated Press.

Internet retail has done well recently as increasing numbers of consumers have tried to ensure they get the best deals possible by searching for products online.

A study by Macquarie Equities Research revealed that 18 per cent of people who visit high street stores are only window shopping and that if they make a purchase they will do so on the internet rather than in-store.

The report, published in July, revealed that the strength of the nation's currency was behind a change in spending habits in seven out of ten of the respondents.

However, the Australian dollar fell to a five-week low earlier today (September 21st) as concerns have not been allayed about the future of the Europe and its debt problems, which may suggest people are set to become more careful when spending on their credit cards in the coming weeks.

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