Australian consumers cut up cards

PERSONAL borrowing is increasingly on the nose for Australians, with new figures showing credit card accounts falling in September for the first time in 17 years.

PERSONAL borrowing is increasingly on the nose for Australians, with new figures showing credit card accounts falling in September for the first time in 17 years.

The average limit grew by just 1.5 per cent over the past year while consumers dropped their credit card balance by $10.30 to $3292.60.

CommSec economist Savanth Sebastian said the change in credit spending showed Australians were becomingly increasingly frugal.

"If there was any doubt about the conservatism of Aussie consumers it was laid to rest with the latest data on credit and debit card lending,'' he said.

"Aussie consumers may be shunning credit cards, but they are certainly using their debit cards.''

The number of debit card transactions has increased by more than 15 per cent over this time last year.