Borrowers still racking up credit card debt

ONE in three people are willing to rack up $3000 on their credit card, despite more than half the country knowing personal loans are cheaper.

Credit cards

Borrowers still racking up credit card debt

ONE in three Australians makes purchases of more than $3000 by credit card, despite more than half the country knowing personal loans are cheaper, according to a Citibank survey.

Of 1000 people surveyed, 38 per cent chose personal savings to fund such a purchase.

Despite lower interest rates on a personal bank loan, only 10 per cent opted for this compared with 33 per cent going for the credit card.

In Queensland, only 7 per cent opted for a personal loan -- the lowest figure in the country.

Citibank is using the research to trumpet its new  "one minute'' personal loan, which promises successful applicants their cash within 48 hours.

Citibank head of consumer lending Jacqueline Nissen says the bank's research found "interest rate, ease of the application process and speed of decision and cash'' were the most important factors.