RBA reveals fall in credit card use

Aussies are spending less money on their credit cards, according to official figures.

The Reserve Bank of Australia reveals that the number of purchases made using credit cards fell by some 22.1 per cent over the course of January, in comparison to December 2008.

Overall, $16.62 billion was spent on charge and credit cards during the first month of 2009, down by 21 per cent from the preceding month.

Cash advances, meanwhile, decreased by ten per cent to $981 million.

And while they are spending less money on the plastic, it also appears that Aussie credit card holders are taking steps to reduce their overall level of indebtedness.

"People are trying to increase their savings and reduce their debt and that's hitting debt embedded in credit cards," Shane Oliver, chief economist for AMP Capital Investors, told news.com.au, adding that many Aussies are concerned about the prospect of rising unemployment rates.

Earlier this week, Laura Menschik, financial adviser at WLM Financial Services, told the Australian that people receiving money as a part of the financial stimulus package should use the money to help repay "non-deductible debt", in particular money owed on credit cards.