Daily Reckoning reports on consumer credit card difficulties

Australians are taking steps to cut down on their use of credit cards.

With trouble in the financial markets rumbling on, people are looking to reduce their expenditure on such plastic cards as they attempt to manage their money, Dan Denning, in an article for The Daily Reckoning Australia, writes.

However, in spite of such moves he points out that households are still experiencing difficulties in servicing the outstanding debt already owed on their credit cards.

Stating that such consumers have a "cash-flow problem", Mr Denning claims that like major financial services firms, credit cardholders are experiencing difficulties.

"They too are overleveraged and have to reduce the amount of debt they are carrying," he points out.

The only means of doing this, he states, is for people to reduce their spending.

Indeed, a significant number of people appear to be taking heed of this after the Reserve Bank of Australia revealed credit and charge card transactions in November stood at $17.614 billion, down from the $19.413 billion noted in October.