Most of us start the new year declaring this one will be different. We say we’ll work out, eat better, and give up our vices. But despite our best intentions, studies show just 8 percent of us ever stick to our New Year’s resolutions. While many resolutions fall by the wayside, it seems many Australians have followed through on their 2018 goals to cut the credit. Official figures from the Reserve Bank show the number of Australians with credit cards has fallen by a record 4.3 percent over the last 12 months. Today just 16 million Australians hold credit cards, down from an estimated 17.4 million when credit cards were the most popular.

As Australians close their credit card accounts, they’re turning to other payment methods that don’t put them into debt. For example, debit card transactions have increased by 12 percent. Millennials are a key demographic fuelling this growth, CommSec senior economist Ryan Felsman told The Sydney Morning Herald.

“The rise of tap and go forms of payment and the general concern about debt since the global financial crisis have fed into that [increase in debit card usage],” he explained.

He added that Australian households are also increasingly more likely to use their mortgage’s redraw facilities for purchases than go into credit card debt.

“People are more cautious about the costs of credit cards and credit card debt,” he added. “And the rewards offered by credit card providers have been pared back a little.”

With 18.5 percent of credit card users struggling with debt, according to recent reports from ASIC, resolving to free yourself from the plastic in 2019 makes sense. The debt experts at Chase Edwards can help. We can suggest strategies for paying down your credit card balance faster than you’d imagined so you can cancel those credit card accounts and stop paying interest sooner. Call us on 1300 854 833 to discover how we can help you escape the debt cycle this year.