The Christmas credit card spending spree is back.

Some economists say we won’t rack up as much debt this festive season as in previous years, but there are signs the nation’s love affair with the plastic card is being rekindled.

Credit card use waned last Christmas due to the financial crisis as many shoppers switched to debit cards.

But with confidence returning to the economy, credit comparison websites are predicting a resurgence in consumer debt during the festive shopping season.

ANZ senior economist Ange Montalti says it appears credit card usage will pick up in December.

“But that doesn’t necessarily mean that we’re spending more or less, I just think the habit is shifting from debit card use to credit card use.”
Full Story

Australians spent $17.77 billion on their credit and charge cards in May, an increase of 2.3 per cent from the previous month, new figures show.

The credit card spending data were published in the Reserve Bank of Australia’s (RBA) latest monthly bulletin released on Thursday.

It showed consumers’ purchases with credit and charge cards rose 2.5 per cent in May to $16.896 billion, compared with $16.482 billion the previous month.

Cash advances declined for the second straight month after falling 2.4 per cent in May.
Full Story

Consumers are increasingly shunning credit cards and using debit cards instead to pay for purchases as they err on the side of financial responsibility be cause of the economic slowdown, MasterCard Australia says.

MasterCard Australia executive vice-president, Australasia, Eddie Grobler said the company was noticing a change in the way consumers chose to pay for items.

“We’ve seen a change in terms of behaviour,” Mr Grobler told AAP after an address at the American Chamber of Commerce in Australia on Wednesday.
Full Story

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.
Full Story