Australians turning away from credit cards for Christmas

Consumers are increasingly looking to turn away from debt, figures now show.

Credit card accounts have fallen in September for the first time in 17 years. Credit card limits have only grown by 1.5% over the past year, the slowest rate of growth on record.

Spending has increased on debit cards, with transactions for good purchases up by 20% in the year to September. Cash-out transactions have also risen as smarter consumers have sought to avoid charges.

CommSec economist Savanth Sebastian suggested that these trends show how Australians have become increasingly cautious about their finances.

"If there was any doubt about the conservatism of Aussie consumers it was laid to rest with the latest data on credit and debit card lending", he said.

Meanwhile, a Telegraph survey has found that families are planning to spend much less on Christmas presents this year because of concerns over the cost of living. Only a quarter of those surveyed expect to use credit for gifts.

Currently listed among Which4U's credit card deals is the Citibank Clear Platinum, which is offering 0% balance transfers and purchases for six months, with a low subsequent interest rate of 11.99% APR. This card also benefits from a 50% fee reduction in the first year ($49).

Other competitive credit card deals include the Westpac Low Rate card, which offers 0.99% on balance transfers for nine months, followed by 13.49% APR.

If you would like to extend your credit in an affordable way, why not start your search at Which4U? Check out our credit card comparison tables today.

Joe Letts