Debit cards purchases rise while credit card use declines

By Mozo ·

Aussies appear to be more reticent to make purchases on their credit cards than they have been in the past, new data from the Reserve Bank of Australia (RBA) suggests.

Plastic was found to be an increasingly popular way of purchasing goods and services, with the number of charge and credit card accounts in the nation rising to almost 15 million.

This represents an increase of nearly 20 per cent over the last five years, with the average debt per credit card reaching $3,322.

Figures from the central bank showed that in the past year, there was a 20 per cent increase in debit card purchases.

In contrast, the average credit card limit grew by just 1.5 per cent during this period, which was the smallest increase seen in the last 17 years.

According to Graham Perry, director of global sales and strategic relationships at Access Prepaid, a growing number of people are opting to purchase goods from overseas using pre-paid travel debit cards, reports National Features.

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