Consumers swap credit cards for cash

Friday 20 March 2009

Article by Mozo

The latest stats from the Reserve Bank of Australia (RBA) show that Aussies are falling out of love with the cheap credit card and are making payments with cash.

With the RBA finding that over the course of January, debit card payments were up 16.5 per cent while credit card transactions fell 2.6 per cent, the Herald Sun reports that Aussies are becoming steadily more frugal.

Speaking to the paper, economist Craig James said that people were still spending but were increasingly aware of their budget limitations.

"It is quite an interesting and positive trend that consumers are wanting to use other people’s money less and use their own money more," he added.

It is the second straight set of figures showing that consumers are focused on paying off their credit card debts, although the number of first-home buyers looking to take on low-interest home loans partly offset the drop in credit card lending in December.

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