Australians 'lost without credit cards'

A new survey conducted on behalf of Citibank Credit Cards shows that over 50% of Australians would be lost without a credit card.

The Asia-Pacific wide study involved an online survey of seven countries including Hong Kong, China, Malaysia, South Korea and Indonesia to produce the Citibank Payment Evolution Report.

The study looked at consumer behaviour relating to credit cards as well as opinions on future uses for credit cards. For credit card dependancy Australians came second behind China where 70% of respondents say they'd be lost without a credit card.

Aussies are also heavy credit users using their flexible friend 5.4 times per week on average.

Credit cards are showing up as one of the most popular forms of payments with 49% of Australian respondents saying they pay for items by credit card more often by credit card than by cash or debit card.

It may be no surprise to here that this increase in credit card popularity has resulted in increased levels of credit card debt. The Reserve Bank of Australia produces a monthly report on credit card debt. The reports have shown a steady increase in Australia's credit card debt which stands at $36.4 billion as of April 2007.

The survey reaveled some interesting differences in credit card behavior between the nations surveyed. For example only 44% of Australians pay their card balance in full each month compared to 81% of South Koreans who settle their credit card bills weekly.

Australians also held the lowest number of credit cards per person out of the nations surveyed with an average of 2.11 per person. Malaysia led the field with 3.26 per person.

When it comes to choosing a credit card almost 50% of Australians, stated the interest rate offered as the most important factor when choosing a credit card.

Citibank is one of the worlds largest financial institutions and offers a range of credit card products to the Australian market.

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