Consumer debt caution more embedded: ANZ

Greater consumer caution toward personal debt is one theme from a new study on financial literacy in Australia released by ANZ yesterday.

The use of loans and credit from financial institutions peaked in 2008, falling in 2011 and 2014, the study shows.

ANZ said that since 2011, the number of people using credit cards to pay for goods and services has fallen from 71 per cent to 64 per cent. It said the lower usage of credit cards "probably reflected continuation of a more cautious attitude towards debt identified post-GFC."


There was a corresponding increase in the use of debit cards, up from 49 per cent in 2011 to 60 per cent in 2014.

There was also a lower incidence of owner occupier mortgages (down from 36 per cent of people in 2011 to 31 per cent).

ANZ said this was particularly prevalent amongst those under 35 years of age where the proportion holding an owner-occupier mortgage fell from 34 per cent in 2011 to 18 per cent in 2014.

The study found "these decreases have been accompanied by some reduction in the proportion of people who felt uncomfortable with the amount of money they currently owed" (down from 18 per cent in 2008 to 15 per cent in 2014).

"However, some people continued to be uncomfortable with their current levels of debt, in particular those supporting dependent children and/or holding significant debt with relatively low incomes."

The Social Research Centre undertook the study for ANZ.