Credit cards habits adapting to GFC

Credit cards habits adapting to GFC

1 July 2009

Credit cards spending habits within Australia appear to be changing and adapting to suit the Global Financial Crisis with April 2009 being the first month in over 14 years that saw Australian credit card debt decrease, according Reserve Bank of Australia.

The RBA figures released last week show that the average Australian owes $3,080 on their credit cards which is lower than the same time last year by $37. While this may not seem like a significant amount, as an average it is quite substantial.

This decline has been attributed to a major shift in consumer credit cards trends and spending habits with the overall findings of the RBA report concluding that Australians are turning to their cash advance option on their credit cards. In fact, the number of cash advances transactions dropped form one in five in April 2008 to one in six in April 2009.

Industry experts on consumer credit cards spending have offered additional tips and advice on how consumers can cut their spending on credit cards with many suggesting a three month review of your credit cards. This action can allow a person to review their own unnecessary spending habits and establish what is essential and unessential spending.

For example, essential items would be unexpected costs such as repairs or bills whereas unessential items would be more those are not immediately needed or at least not necessary until later time when more funds were available.

Furthermore, many credit cards experts actually suggest leaving your credit card at home on occasion in order to even remove the possibility of making unnecessary charges.

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