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.
