Credit card demand 'slows' amid recession

Demand for credit cards slowed in Australia in March, with private sector credit increasing by a seasonally-adjusted 0.1 per cent during the month.

According to Dow Jones, the latest figures published by the Reserve Bank indicate that consumers are turning away from credit cards amid worries about job security.

The news source noted that while demand for credit was higher than 15 per cent a year ago, personal sector credit other than home loans has dropped by 6.2 per cent during the past 12 months.

According to MoneyManager.com.au, credit cards are becoming an increasingly important part of life for many people.

However, it suggested that it is important for first-time credit card customers to do their research before deciding which product is best for them, as different combinations of fees, rates and features can be made to meet people's individual needs.

It also noted that credit cardholders with "good habits" may benefit from occasionally spending on plastic, as it will help to "smooth" out their purchasing over a longer period.