40% of Australians 'to rely on credit cards this quarter'

Credit cards will be used to pay bills by nearly half of Australians in the first quarter of the year.

Nearly half of Australians will use credit cards to pay bills in the first quarter, a survey has found.

Younger people made up 56 per cent of this total, the credit expectations survey by credit reporters Dun and Bradstreet found.

Christine Christian, chief executive of Dun and Bradstreet, said it was a "cause for concern" and noted that credit would become more expensive as the year progresses.

She warned: "Further increases in the cost of credit for those groups already under pressure could trigger an irreversible spiral into serious debt troubles."

Ms Christian said the interest rate increase announced by the Reserve Bank is now affecting Australian credit card customers.

Earlier this month Money-AU, an Australian finance news site, recommended a 0% balance transfer is a good way to sort out debt, as one of its consumer tips for saving.

By Kate Guthrie