St George reveals 1 in 3 to use stimulus money to pay credit cards

A significant number of Aussie credit customers will use the money received from government's financial stimulus package as an opportunity to get to grips with their credit cards.

Research commissioned by St George - which offers the Platinum and Vertigo credit cards - reveals that just over a third (35 per cent) of those getting such cash are planning to use it to pay down credit cards and other forms of personal debt.

Just over one in ten will put this cash towards mortgage payments, the Australian Associated Press reports.

"There is no doubt the current economic climate is causing many people to act cautiously with all financial transactions and some are choosing to take a more conservative approach to this one-off cash payment," Andrew Moore, St George spokesperson, states.

Findings from the bank revealed that although a total of $7.7 billion will be handed out, just $2.6 billion of this will be spent at the retail queues.

Last month, Chris Browne, director of Financial Design for Life, suggested that people use the stimulus cash to pay off high-interest credit cards.

Those looking to tackle their debts may also wish to consider searching for a 0% credit card deal.