Consumers remain wary about using their credits cards for the Christmas period, preferring instead to use cash or debit cards, an economist says.

CommSec economist Savanth Sebastian said consumers were not prepared to spend beyond their means and take on additional debt, even with Christmas approaching.

“They are happy to use cash, they are happy to use debit cards, they certainly do not want to use credit cards,” Mr Sebastian said.

“It will be a trend that will remain in force until next year.

Average credit card balances fell $4 to $3,141 in October, Reserve Bank of Australia (RBA) data released this week showed.
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Out shopping, or away from home on holiday, Australians should be especially vigilant in the holiday season to prevent identity theft.

One in five Australians have been victims of identity theft, a survey has found.

Christmas and New Year is a period of peak activity for fraudsters and identity thieves, survey sponsor Veda Advantage, an ID theft protection company, says.

“Everyday things like online shopping, more frequent use of credit cards and ATMs and leaving mail to pile up in our letterbox when we are away can increase our exposure to identity theft,” company spokesman Kelvin Kirk says.

“When we’re relaxing on holiday we are often less conscious of when and where we hand over valuable identity information - leaving us vulnerable to fraud,” he said.
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Christmas stockings may be a bit skinnier this year despite a high level of consumer confidence, and an economy that is outperforming other advanced countries.

Treasurer Wayne Swan concedes that the country still faces many challenges, such as rising unemployment, but his government will be working just as hard to ensure an enduring economic recovery.

Still, one financial market strategist, who has a nose for predicting official interest rate decisions correctly, does not believe the Reserve Bank of Australia (RBA) will lift the cash rate again in December.

Last week’s monthly Westpac-Melbourne Institute consumer sentiment survey found that while confidence fell 2.5 per cent in November, on the back of rising interest rates, it remained 38.3 per cent higher than a year ago with optimists still clearly outweighing pessimists.
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Despite the gripes over horrendously high credit card interest rates, debt-laden households still thrashed the plastic during the Christmas spend-up.

Consumers spent $21 billion with their credit and charge cards in December, a whopping 19.4 per cent rise on the previous month.
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The federal government’s $10.4 billion economic stimulus package delivered late last year resulted in only a moderate increase in Christmas spending, a new survey reveals.

The findings add weight to the federal opposition’s call for any future package to focus on jobs and tax cuts, rather than one-off payments to families, pensioners and carers.

Research by the Australian National Retailers Association (ANRA), released on Thursday, shows people weren’t prepared to spend December’s windfall payments in one go.
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Australians will still spend significantly on Christmas gifts but will be careful not to go into credit card debt during these tougher economic times, a survey finds.

Research by credit card checking company Veda Advantage shows that 26 per cent of Australians will spend as much as $1000 more on Christmas presents this season than they did last year.

The survey found that a further 32 per cent will spend the same amount on presents as last year.
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