Consumer confidence has reached its highest level since 2010, as households enjoy the wealth effect of rising house prices, but people remain cautious. They are still looking to repay debt rather than take on new borrowing, and continue to build savings rather than buy shares.The latest Westpac Melbourne Institute Index of Consumer Sentiment, which was released yesterday, shows that consumer confidence resumed the upward trajectory it has been on this year, apart from a fall last month. There was a big increase in the number of consumers who said their family finances had improved over the past 12 months. However, there was a fall in expectations for family finances in the coming year, which suggests that people remain cautious and will take a conservative approach to their finances.This view is supported by a number of other recent consumer surveys.According to ING Direct's latest Financial Wellbeing Index, released at the end of October, households are experiencing their highest level of financial wellbeing in almost four years. Respondents to the ING Direct survey said they were taking advantage of low interest rates by maintaining their focus on reducing debt. People said they were more comfortable with their level of long-term debt (principally mortgages) and short-term debt, such as credit card balances.Sixty-nine per cent of households said they were very comfortable with their mortgage, and 38 per cent said they were making extra repayments.Thirty-six per cent said they had no significant credit card debt.Financial stress, measured by the proportion of households who say they are "very uncomfortable" meeting regular bills, has fallen from 20 per cent earlier this year to 16 per cent in the latest survey.The number of households that report being uncomfortable with their level of personal savings has fallen from 29 per cent to 25 per cent.MLC's Wealth Sentiment Survey, published last month, found that consumer balance sheets were very conservative, with a heavy emphasis on building up deposits and paying off debt. More than 50 per cent of respondents to the MLC survey said they had been paying off debt, and it was the also the most popular option when people were asked what their investment intentions were. This option was particularly popular among high-income earners.After paying off debt, investors are planning to add to their cash or term deposit holdings, and to their superannuation accounts.MLC found that there has been a marginal increase in risk appetite, with a growing desire to put more into property and slightly less aversion to shares.RaboDirect National Savings and Debt Barometer found that there were some deep concerns about retirement. Twenty-nine per cent of Baby Boomers expect to have a mortgage when they retire. Of those, 25 per cent plan to use their super to pay off what is owing on their mortgage and 33 per cent will downsize.Respondents to the RaboDirect survey said the average balance in their transaction account was $1995 - up 42.9 per cent from $1396 last year.