According to a recent survey, Australians are more carefull in taking on additional debt. People are showing reluctance to use credit cards and other forms of credit unnecessarily. This is despite an overall sign of improved consumer confidence.
Recent data from the Reserve Bank of Australia (RBA) showed the total value of transactions on credit and charge cards rose 6.05 per cent in February.
The average credit card account balance increased by 1.9 per cent to $3,250 in February and it was 3.29 per cent higher than a year earlier.
Australians remain confident about the economic outlook despite two interest rate rises by the RBA in 2010, the Westpac-Melbourne Institute consumer sentiment survey for April said this week.
Consumers are showing preference for the use of debit cards rather than credit cards. People prefer to use their own money when they can.
Since the onset of the Global Financial Crisis, consumers are opting not to take on debts whenever they can avoid it.