Aussies love debit cards

Cash and debit cards are taking pride of place in Australian wallets. There are now more than double the number of debit cards in the community (35.3 million) compared to credit cards (15 million).

The number of new credit cards being issued has also dropped to its lowest level in 18 years with growth falling from a peak of more than 8 per cent before the GFC to only 1 per cent this year.

CommSec chief economist Craig James said the new age Aussie consumer is savvy opting to use cash rather than credit.

“Consumers want debit not credit cards,” he said. “And if a credit card is ordered, it must have an interest-free period. Many customers are paying off credit cards by the due date and effectively getting free use of credit.”

Source: The Daily Telegraph