Aussies 'prefer debit cards to credit cards'

Australians are reducing the amount they spend on their credit cards and increasing expenditure using debit cards, it has been suggested.

CommSec economist Savanth Sebastian told that this is a sign that Aussies are becoming increasingly cautious regarding their finances.

"If there was any doubt about the conservatism of Aussie consumers it was laid to rest with the latest data on credit and debit card lending," he commented.

The figures revealed that consumers cut their average credit card balance by $10.30, yet the number of debit card transactions soared by 20 per cent in September compared with a year earlier.

Recent research published by the Westpac-Melbourne Institute also suggested that Aussies are still cautious regarding their spending.

According to a study conducted by the organisation, only 11 per cent of people plan to increase their spending on presents at Christmas this year compared with 2010.

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