Credit Cards - Woolworths chief exec: Stimulus used to repay credit cards

While some people put the money received from the government's financial stimulus package to its intended use of spending at the tills, a retail expert claims that others decided to get to grips with their credit card bills.

Speaking on ABC Local Radio show the World Today, Woolworths chief executive Michael Luscombe states that "there's no doubt" that a number of Aussies "went out and consumed straight away".

However, he suggests some used this money to repay debts owed on credit cards.

And in addition to paying back money owed on credit cards, Mr Luscombe claims that other financial commitments - such as mortgage repayments - were met with money from the stimulus package.

Looking forward, it could be possible that the next financial handout may be used to service credit cards and other monetary commitments, with the Woolworths executive stating that its timing "is just about right".

Meanwhile, John Forrest, federal member for Mallee, told the Wimmera Mail Times earlier this month that two-thirds of those receiving money from the previous handout made a "responsible decision" with the cash, by repaying credit card debts or placing it into a savings account.

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