The report, released by the Reserve Bank of Australia, shows the average credit card balance in April was $3,080 - a decline of 1.2 per cent annually.

Credit card spending also declined by 7.5 per cent, down to $17.376 billion for the month.

Economists suggest the decline in credit card use can be attributed to concern about the economy, with many consumers worried about continued employment.

The Federal Government forecast unemployment would rise to 8.5 per cent in 2010.

Cash advances also fell to a record eleven year low, down by 10.9 per cent to 2.377 million. Annually, the value of cash advances has fallen by almost 17 per cent. The decline in cash advances is seen as good news by consumer groups, due to the higher interest rates and penalty fees.

The report also showed the use of debit cards has increased 31.86 per cent in the last 12 months, indicating a consumer shift from credit to debit purchases.

But the report wasn't all good news. Credit card repayments also fell by 7.9 per cent to $18.168 billion in April after increasing by 17.5 per cent the month before.

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