Debit cards help Aussies wave goodbye to debt

Mozo

Monday 29 June 2009

Consumers are turning their back on years of crippling credit card debt and are becoming increasingly keen on debit cards as a way of keeping spending under control.

The Courier Mail reports that credit card debts have fallen for the first time in 14 years, while first-time buyers are also moving away from the trend of taking on huge home loan debts.

Speaking to the paper, credit card expert Harry Senlitonga noted that while consumers are spending less on credit, they are also paying down large debts too.

"Reserve Bank figures show a distinct trend of consumers shying away from credit cards [and] those who do have them seem to be making a determined effort to pay down debt," he said.

And while credit cards go out of fashion, it appears that debit cards are the weapon of the new debt-conscious Aussie, with the number of debit card transactions soaring 32 per cent in the past year.

Earlier this month, the Sydney Morning Herald reported that while many homeowners have become distinctly worried about job security in recent months, the economic crisis has been far less worrying for those lucky enough to be free from credit card and home loan debt.

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