Aussies are showing a steely determination in getting to grips with their finances, it has been suggested. With concerns about the economic downturn growing, people are increasingly turning their backs on their "big borrowing ways", Karina Barrymore, writing in the Courier-Mail, states.
Consequently, there has been a greater focus on repaying debts owed on credit cards and other forms of personal borrowing, as Ms Barrymore points to figures published by the Reserve Bank of Australia (RBA) showing the typical outstanding credit card balance fell by one percentage point over the course of April to stand at $3,080.
Further signs of the overall move to get on a firm fiscal footing can be seen as the RBA reveals the average balance is down 1.2 per cent on an annual basis, the first year-on-year decline recorded since the bank began publishing data on credit card debt in 1994.
Meanwhile, the value of cash advances is down 15 per cent from the same time 12 months ago.
Commenting on the Reserve Bank's figures, Harry Senlitonga, analyst for Canstar Cannex, states there is a "distinct trend of consumers shying away from credit cards".
He adds that those who are in possession of credit cards appear "to be making a determined effort to pay down debt".
Indeed, those who are looking to get tighter control of their finances could well find that a 0% balance transfer credit card deal offering an interest free period on debt shifted across could prove to be of assistance.
Meanwhile, Nicole Rich, director of the Consumer Action Law Centre, claims "it's good" that moves to drive down debts are being made, although lenders are increasingly offering attractive credit card deals to customers in an effort to encourage them to borrow.
Earlier this month, Shane Oliver, head of investment strategy and chief economist for AMP Capital Investors, told the Australian that although lenders have dropped rates on their mortgages since the string of RBA cuts, they have been reluctant to fully pass on such falls towards their credit cards due to fears defaults will rise in the tough financial climate.
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