New technology encourages debit card use

It seems that the introduction of contactless payment technology is encouraging more people to utilise their debit cards when making small purchases.

The Sydney Morning Herald reports that Aussies are now spending far less on credit cards because they do not want to slide into debt.

By using their debit card instead, shoppers can stick to a budget far more easily, as they are spending money that is already in their bank account.

With more stores adopting sophisticated payment scanners at the point of sale, it has never been more convenient for people to use their plastic rather than cash.

Many Aussies have had little choice but to change their spending habits in recent years due to the hiked cost of living and uncertain economy.

Director of policy at the Consumer Action Law Centre Gerard Brody told the news provider that people are now a lot more financially savvy than they were before the global financial crisis in 2008-09.

However, he warned that banks and lenders will still target people with their credit card advertisement campaigns and Aussies need to be very careful if taking on more credit.

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