Credit card spending spree is back 

Source: ONE NewsMan using credit card

Australia's Christmas credit card spending spree is back.

Some economists say consumers won't rack up as much debt this festive season as in previous years, but there are signs Australia's love affair with the plastic card is being rekindled.

Credit card use waned last Christmas due to the financial crisis as many shoppers switched to debit cards.

But with confidence returning to the economy, credit comparison websites are predicting a resurgence in consumer debt during the festive shopping season.

ANZ senior economist Ange Montalti says it appears credit card usage will pick up in December.

"But that doesn't necessarily mean that we're spending more or less, I just think the habit is shifting from debit card use to credit card use."

Edith Fink from financial aggregator website Artog.com.au warns Australians to "take stock" before they hit the shops this Christmas.

"Christmas is supposed to be a time of joy and family," she said.

"Yet so many Australians get caught up in the hysteria of having to spend a small fortune on presents without any concern for the future."

With consumer confidence above average levels, credit cards could get a "major thrashing" in the lead up to Christmas, she said.

Fink says people should shop around for competitive credit cards and make sure they can afford repayments before making purchases.

Access Economics director Chris Richardson is not so certain the credit card will be back over summer.

Richardson cited recent Reserve Bank of Australia (RBA) figures showing purchases made with credit cards, which have been growing at 10% per year, drifted down to about 2.5% last year.

"In other words there has been a long-term trend in favour of credit card use, but it's slowed notably through the crisis," he said.

"We are seeing surveys, such as the Westpac MI survey, which noted that people wanted to be more conservative in their Christmas spending."

Recent experience of credit card use showed consumers had become more careful, he said.

"It will be a modest Christmas rather than a barn burner as far as retailers are concerned."