Consumers choosing the savings button

Average credit card balances fell $4 to $3,141 in October according to data released by the Reserve bank of Australia. The annual growth in credit card usage rose one per cent in October, while purchases made using debit cards and electronic funds transfer point-of-sale (EFTPOS) was 16 per cent higher.

CommSec economist Savanth Sebastian said consumers were not prepared to spend beyond their means and take on additional debt, even with Christmas approaching. "They are happy to use cash, they are happy to use debit cards, they certainly do not want to use credit cards," Mr Sebastian said. "It will be a trend that will remain in force until next year.”

Source: Herald Sun