Australians 'switching to debit cards'

Thursday 17 September 2009

Article by Mozo

More and more Australians are opting for debit cards instead of cheap credit cards, it has been discovered.

According to new figures from the Reserve Bank of Australia, cash advances on credit cards fell by 1.4 per cent in July, which represents a decline of $19.1 billion.

CommSec economist Savanth Sebastian explained this could reflect a new era of conservatism when it comes to spending, demonstrating the impact the recession has had on Australian people.

"We have seen a considerable rebound in consumer confidence but households are really attempting to spend within their means," he commented.

But this does not mean that people are not spending, he pointed out. In fact, he said there has been a "rebound in consumer confidence", something illustrated by strong retail figures recently.

Furthermore, people are beginning to increase their credit card repayments, with a rise of 2.8 per cent being paid back in July.

This echoes the sentiments expressed by Myers recently, which recorded a hike in profits for the year – something the department store chain attributed to a boost in consumer assurance in the economy.

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