Borrowers 'taking steps to reduce credit card debts'

The nation's propensity to spend money appears to be rising, it has been suggested.An article in the Australian points towards the minutes of the Reserve Bank of Australia's board meeting on July 7th which indicated an increase in overall consumer confide

Australians are increasingly looking to get themselves on a firm financial footing, new Genworth Financial research shows.

Figures released by the firm indicate that an increasing number of people are debt free.

Questioned in April and May, just over a fifth (21 per cent) are now out of the red, a rise from the 18 per cent recorded in 2008.

In particular, it appears people are taking steps to tackle their credit card debts, with the number of those owing money on such a form of plastic falling eight percentage points to stand at 52 per cent.

Those looking to drive down their credit card debts even more significantly might want to consider opting for a 0% balance transfer product.

The study also indicated a fall in the number of people struggling with home loan commitments, something Genworth chief executive Martin Barter attributed to falling interest rates and improving consumer sentiment.

Meanwhile, Nomura International chief economist Stephen Roberts recently pointed out to the Age that there is "plenty of evidence that people are winding back on credit cards".

Written by Emma North