Debit cards 'outstripping credit card growth'

The popularity of debit cards is growing as new research reveals Aussies are taking steps to reduce their credit card debts.

As the economic crisis rumbles on people are increasingly looking to make use of debit cards, it has been suggested.

Indeed, figures from MWE Consulting show that annual spend on such plastic products is up by 17 per cent, in comparison to a four per cent growth in credit card expenditure.

Such an Australian banking trend is particularly prevalent among young people, managing director Mike Ebstein reports.

"I don't think this is a flash in the pan," he tells the Australian, as the firm indicates that as the economic downturn continues Aussies are increasingly concentrating on paying down their credit card debts.

However, Mr Ebstein points out that once the economy begins to improve the use of credit cards will increase.

Meanwhile, Tammy May, director of MyBudget, recently told News Limited newspapers that consumers should ensure that they make clearing high interest rate credit card and personal loan debt their main financial priority.

Written by Ashley King