Australians have adopted a cautious approach to spending and have strong debt reduction and savings plans in place, according to the St. George-Melbourne Institute Household Financial Conditions Report. The report shows Aussies are improving their financial position by paying extra on to their mortgages, reducing credit card debt and putting savings aside.

In the last quarter, the number who directed savings towards property increased 1.6%; credit card debt decreased from 30% to 29.6% while the number who boosted their piggy-banks increased 1.9%. Credit card debt had not been below 30% since September 2008