I was interested to read yesterday that Australians are ditching credit cards. Maybe not completely but we’re on a downhill trend.
New figures show card applications have hit a nine-year low.
Credit reporting agency Veda’s consumer credit demand index for the September quarter found that year-on-year, applications for plastic are down a staggering 10 per cent.
Veda’s general manager of consumer risk, Angus Luffman, says there are several reasons why people have moved away from unsecured debt such as credit cards. – News.com.au
I’m glad that the tide is turning because I know a lot of people have found themselves in a lot of trouble by overextending themselves with credit cards. We’ve had many offers to increase our credit limit and while it’s tempting when you see the kind of money that we could have at our disposal, we just know it spells trouble.
So, are you one of those opting out of the credit trap? Have you cut up your credit cards?
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That’s awesome. I know here in America credit card has gone down through the recession, which is huge. I hope that relying on credit as a way of out is going out of style, but I doubt it.
I still occassionally use a credit card, but it’s usually to buy something online or a timing thing. Thankful to have emergency savings built up for all the surprises of life!
I really hope that as your economy starts to strengthen people won’t forget the lessons learnt.
I must admit that I don’t have any savings built up for a rainy day. I do wonder if ‘savings’ and ‘parenting’ are mutually exclusive terms. 🙂
i was so far in cc debt back in 2005 that I decided to do something about it. I was reading Dave Ramsey’s material so I chose to cut up all my cards. I only have a debit card these days and I am happier for it. I pay cash or use the debit card for everything. It is refreshing not getting one of those bills in the mail.
Glad to hear that you turned it around. I’ll have to check out Dave Ramsay.