Credit card spends up in June

Thursday 20 August 2009

Article by Mozo

Australians are increasingly opting for credit cards as their primary payment option, according to new research.

Figures from the Reserve Bank of Australia, published in its monthly bulletin, show that consumers spent $19.365 billion on their credit cards in June, according to the AAP.

This may indicate that more people have looked to compare credit cards in recent months.

In addition, purchases on plastic increased by 8.9 per cent throughout the month, with cash advances rising 14.9 per cent.

People also made increased efforts to pay off their credit card debt, with some $19.303 billion being repaid.

Commenting on the results, Commsec economist Savanth Sebastian remarked that while there was an increase in spending, consumers are still hesitant when it comes to getting into debt.

He said: "The latest reading on credit card usage really highlights the impact of the global financial crisis on the average consumer.

"Consumers continue to embrace the new era of consumer conservatism."

Nicole Rich, director of policy and campaigns for the Consumer Action Law Centre, recently welcomed new rules surrounding credit cards, which will see banks regulated on responsible lending.

She explained that the National Consumer Credit Protection Bill will help to keep people from getting into too much credit card debt.

This article is brought to you by Mozo – Helping you compare debit cardsADNFCR-1761-ID-19321688-ADNFCR

Compare today's top debit cards

Back to top