Aussie credit could be on the up

Aussie credit may be looking brighter after new research was revealed.

Data from last year's December quarter showed families to be "fairly confident" about their financial future, suggesting there is a healthy perspective on Aussie credit at the moment.

According to the latest set of minutes from the Reserve Bank of Australia (RBA), which were published this week, the three-month period also included continuing growth in household spending, which could be good news for the economy as more people start to open their wallets.

Expenditure may have been boosted by rising employment levels, believed to have improved by about 190,000 positions in the five months to January this year.

The RBA's decision to raise the cash rate by 0.25 percentage points to four per cent may come as welcome news to savings account holders, although credit card users who want to find a competitive product might discover better deals on the market thanks to the development.

However, house prices were said to have gained "significant momentum", so consumers looking to buy a home could benefit from having a wide range of loans to choose from and decide which is the most suitable.

Earlier this month, the RBA hosted the Cards and Payments Australasia event, which discussed the importance of card payments in a modern economy.

Research showed some 10 million transactions are made every day in Australia, with about 40 million debit cards and 20 million credit and charge cards currently on issue.

It was said the value of expenditure on personal cards equals about half the entire size of household consumption.

By Mark Hornby