Aussies 'adopting conservative financial attitude'

The economic downturn has caused a more conservative approach to money management, one financial expert claims.

People are taking an increasingly prudent approach towards how they manage money, it has been suggested.

Commenting after research by the Reserve Bank of Australia (RBA) revealed that credit card spending fell from $19.4 billion in June to $19.1 billion in July, Commsec chief economist Craig James claims the Australian banking figures highlight the financial downturn is still fresh in people's minds.

"It has caused a conservative attitude to come through for people and for businesses and that's not going to change overnight," he tells the Age, as the RBA also revealed a three per cent rise in repayments.

Mr James adds that due to such consumer caution the bank has "no convincing reason" to increase interest rates over the next few months.

Aussie credit statistics from the RBA also revealed that credit card cash advances fell in terms of both number and value over the course of July.

Written by Ashley King