Cardholders choosing credit over savings

Usage of credit cards picked up in November 2009, in a break from the long-running but gentle trend over recent years for spending on payment cards to drift toward debit cards.

Analysis of monthly data on payment card use from the Reserve Bank of Australia by MWE Consulting shows that spending increased by 4% and balances by 2% in November over October, and was “undoubtedly the most robust credit and charge card result for some time”.

The $900 million increase in credit card balances in the month of November, to $46 billion, represents two thirds of the growth in balances in the 12 months to November 2009.

Purchases on debit cards fell by 1.2% in November 2009 from October 2009, in a break from the long-running trend.

If you need help to consolidate your credit card debts, speak to the mortgage brokers at Intellichoice by calling 1300 55 10 45 or email info@intellichoice.com.au