Debit card use increasing faster than credit cards 'due to changing attitudes'

Monday 24 August 2009

Article by Mozo

A trend has reportedly developed which sees Australians routinely shifting from credit cards to debit cards.

With the global financial landscape making consumers more concerned about their fiscal health, Commsec economist Savath Sebastian told AAP that people are changing how they use plastic.

Recent statistics from the Reserve Bank of Australia showed a 16.1 per cent rise in the value of purchases and cash advances by debit cards in the 12 months to June 2009, while the increase in credit card use was 5.5 per cent.

"What you are seeing in this financial crisis are consumers being a lot more savvy in the financial sense in terms of managing the household budget and a lot more aware of unnecessary expenses," Mr Sebastian said told the news provider.

His comments were reinforced by a third consecutive monthly reduction in the number of credit card accounts accruing interest.

Meanwhile, a recent report in the Sunday Telegraph noted how women are being wise with their credit and debit cards, using them online to hire fashion items for a fraction of they price they would pay to buy them.

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