Commonwealth Bank reveals cautious credit card approach

New research by Commonwealth Bank reveals that Aussies are taking more a responsible attitude towards credit cards and money management as a whole.

Figures released by the bank - which offers the Commonwealth Gold credit card and the Commonwealth Awards credit card as a part of its credit card portfolio - reveal that just under three-quarters (72 per cent) of 18 to 24-year-olds have cut their spending as a direct response to the economic downturn.

Nine out of ten such consumers - known as Generation Y - told Commonwealth Bank that they would now prefer to use money from their savings accounts, before considering a credit card, when it comes to funding their aspirations.

Meanwhile, 68 per cent of respondents claim to be paying most if not all of their monthly debts.

"The good news out of this research is that for Gen Ys, responsible financing is in, and debt financing is out," Ross McEwan, retail bank group executive for Commonwealth, claims.

Those looking to get their debts under control may want to consider selecting a card that offers an interest free period on balance transfers.

Earlier this month, Christine Howard, of the Commonwealth Bank, told members of the Cowell branch of the Probus Club to ensure they never lose sight of their credit card while making a transaction.

Written by Kate Guthrie.