Consumers shunning credit card debt

Mozo

Thursday 18 June 2009

Australians are starting to put down their credit cards and are turning their attention to paying off debts, new figures from the Reserve Bank of Australia (RBA) suggest.

The Bank has revealed that consumers spent 7.5 per cent less on their credit cards in April than they did in March, suggesting that Australia’s love affair with debt may be coming to an end.

"Despite early signs that the global economy is stabilising, consumers continue to remain cautious, shunning debt at every opportunity," said economics expert Savanth Sebastian, speaking to the AAP.

He added that the figures show the first annual contraction in credit card lending seen since records began some 14 years ago.

Meanwhile, the amount of cash spent on debit cards has shot up 31 per cent in the last year, RBA figures show.

Figures published by the bank last month showed a 12.9 per cent increase in debit card spending over the course of March.

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