Aussies chose debit over credit in August

By Mozo ·

Aussies are increasingly opting for debit cards over credit cards, according to new figures.

The Reserve Bank of Australia published data regarding consumers buying on plastic during August.

An AAP report relayed that it found a continuing shift towards the use of debit cards as there was a 1.5 per cent dip in the value of purchases and cash advances on credit cards compared to July.

However, EFTPOS usage, including cash withdrawals, saw a 2.1 per cent increase, taking its cumulative value to $11.8 billion throughout the month.

Commenting on the figures, Commsec economist Savanth Sebastian said this demonstrated a trend of debt avoidance by using cash and debit cards.

"It seems the reliance on credit has really waned and the focus for consumers is trying to manage their household finances," he remarked.

Mr Sebastian predicted that credit card transactions will increase in the future, however.

In related news, Australians are paying off more of their credit card debt, according to MasterCard.

The company said there was $19.839 billion paid off in July.

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