Consumers Cut Back on Debt

The latest Dun & Bradstreet Consumer Credit Expectation Survey showed that Aussie consumers are paying down their debts and are becoming more cautious on how they borrow and spend.

In a survey of 1,200 respondents, the results also reveal that Australians are saving more money and are more careful on discretionary spending. Chief executive Gareth Jones said there is a sizable shift on how Australian consumers are spending, adding that they are more focused and committed on spending within their means.

Jones said that this new attitude on spending will improve levels of delinquency and personal debt. In the process, it would help households, especially those trying to make ends meet.

Economist Stephen Koukoulas said paying down debts would allow consumers to have a more secured financial standing especially if the Australian economy slows down.

He added that if there’s no economic slowdown in the next two to three years, then Aussie consumers would be well in place when it comes to spending.