Australians have been shifting from credit cards to debit cards when making purchases showing changing credit habits. The value of purchases and cash advances on credit and charge cards fell to $18.8 billion, 1.5% less in August than July.

However Australians are also expected to increase overall credit card debt as they become more confident about the economic recovery. This is evident as the total EFTPOS purchases and cash withdrawals rose 2.1% in the month of August.

This new trend is a positive movement, however some Australians continue to struggle to repay their debts, and one in five of those say that they are likely to apply for more credit in the upcoming months to Christmas.

Evolving Credit Habits

Despite lower interest rates, about 23% of people say that they owe more today than they did a year ago. Unfortunately things are not going to become easier any time soon, with interest rates now rising, finances will become strained and people will apply for more credit to try and borrow their way out of debt.

Now is a great time to get your finances back on track, then your Christmas spending can be less stressful and you can start 2010 knowing where you stand financially.

Australian Lending Centre has a variety of options available to those who need help. If you are struggling to make your repayments, call us now on 1300 138 188 to hear what options we may have available for debt consolidation.