Aussies avoid debt with debit

By Mozo ·

Despite the dominance of credit cards in the world of plastic spending, debit cards are becoming more popular for prudent Aussies, stats have shown.

Recent figures from money experts East & Partners have found that debit card transactions now account for nearly a quarter (23 per cent) of customer payments, up from 14 per cent in mid-2005.

During the same time, credit cards have become slightly less popular and now account for about 26 per cent of all consumer sales.

Zoran Knezevic, an analyst with East & Partners, was quick to point out that it is unlikely that the days of the credit card are numbered.

“There is always going to be an underlying need for credit among consumers … It just looks like the scales are being tipped in favour of debit cards,” he told the Sydney Morning Herald.

In other news, the Australian Associated Press has recently pointed to official figures from the Reserve Bank showing that the number of applications for credit cards has slowed steadily as Aussies look to cut back on spending.ADNFCR-1761-ID-18762671-ADNFCR