Credit card demand falls

People are making less use of credit cards, it has been revealed, although this could change over the coming months.

Australians' use of credit cards continues to decline, new figures have shown.

Between April and June, Aussie credit enquiries fell by a record 22 per cent, research published by Veda Advantage reveals.

Such a decline compares to the 12.4 per cent drop seen in the previous three-month period, while credit card enquiries have now fallen for the fourth successive quarter.

The study also reveals that overall demand for consumer credit - which consists of both personal loans and credit cards - fell 20 per cent over the course of last month in comparison to the same period of time in 2008.

Despite such falls, default amounts increased between the second quarter of this year from the previous three-month period.

However, Russell Evans, general manager of Veda Advantage, states that the next few months should "see signs of strength slowly returning to consumer credit demand".

Meanwhile, one pair of men recently revealed their Australian banking skills when it comes to credit cards, as Justin Barrie and Dan Bisa were challenged by A Current Affair to see how much they could save using card reward schemes.

In the space of an hour, the pair landed free meals and discounted clothing, saving a total of $187.

Written by Kate Guthrie