Cutting Out Credit

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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