Many Aussies 'not changing financial approach'

The majority of people are unwilling to change their approach to credit cards and other areas of personal finance despite the ongoing financial downturn, new research indicates.

Although the economic crisis continues to rumble on, a new study shows that many Australians are yet to change their financial habits.

Research carried out by Finsia - Financial Services Institute of Australasia reveals that although 60 per cent of people claim to be under either "some" or "a lot" of monetary stress since the start of the downturn, 51 per cent of people believe that there will not be any long-lasting effects of the downturn.

The study also indicates that 84 per cent of Australians believe there is too much access to credit cards for those people who unable to repay. Indeed, with 79 per cent of people in possession of a credit card, just under a fifth of these are oblivious to how much interest such a product charges.

It was also revealed that many people are not aware of how their superannuation is invested, something that could interest those looking for tips for saving for retirement.

"Despite recognising the inadequacy of their retirement savings and the unsustainable levels of access to easy credit, Australians appear largely unwilling to change their borrowing and spending approach in order to address their longer term financial security," Dr Martin Fahy, chief executive of Finsia, states.

Such comments come as figures from the Reserve Bank of Australia revealed that credit card spending rose by nine per cent over the course of June from the previous month.

Written by Bret Clement