Paying off credit card debt is 'great'

Using money from the government's financial stimulus package to pay off credit cards is a particularly good idea, a leading politician claims.

Speaking to 2GB radio talk show host Chris Smith, assistant treasurer Chris Bowen claims that putting the handout towards card debt may be especially helpful for Aussie families.

"Now if you are a family who uses the stimulus payment to pay off their credit card, I say 'great'", Mr Bowen claims.

And in doing so, he suggests that such households are likely to feel more confident with regards to spending money over the coming months and will be more comfortable should they presented with a situation - such as a broken washing machine - which involves unexpected expenditure or simply feel like taking a trip away.

Meanwhile, recent research commissioned by St George indicated that over a third (35 per cent) of Aussie credit consumers plan on using their stimulus package to pay off credit cards and other forms of debt.