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Cash-strapped Aussies who turn to payday loans may be better off getting their hands on cheap credit cards.

A report in the Sydney Morning Herald claimed that once the federal government takes over the regulation of consumer credit, the interest-rate caps on such loans will be removed.

Instead, the organisation will rely on responsible lending laws to push payday loan providers in the right direction, although Aussies may want to rely on cheap-rate credit cards instead.

Speaking to the newspaper, Therese Wilson, who chairs the Australian Microfinance Network, said: “There will be a responsible-lending requirement attached to credit contracts and I think it’s relying on that to minimise exploitative lending practices.”

The AAP previously reported that new laws could soon clamp down on dodgy lenders who offer credit cards that Aussies cannot afford.

Other financial products which are expected to be included under the tough legislation are mortgages, it added.

A chief finance officer in a state department in Pilbara has been charged with theft offences after using a government credit card to make personal purchases.

Perth Now reports that the officer, who has not been named, allegedly used the credit card to make numerous personal purchases, racking up bills for paintings, new clothes, a new computer, kitchen knives and a television.

The case was brought after an investigation carried out by the Corruption and Crime Commission.

Nick Anticich, director of operations at the commission, said that the state agency had alerted them to suspected misconduct.

“The chief finance officer, whose role is to monitor financial controls, is alleged to have abused the trust and responsibility placed in them,” he said.

The case follows the launch of an inquiry against former Sydney Ferries chief executive Geoffrey Smith, who was sacked from his position after it emerged he had racked up a huge credit card bill for personal items on the company account.

According to the AAP, the former executive spent over $237,000 on private school fees, alcohol, club memberships and other personal expenses.

Although Aussies have taken the time to compare credit cards and are well aware of the the payment charges, many are still being stung by late fees.

Such are the findings of a new poll carried out by news.com.au, which reveals that the majority of people have researched credit card fees and are aware of the exact amount of the penalty.

However, a quarter of respondents conceded that they had been stung for failing to make payments on time or paying off less than their lender requires.

Speaking to the news provider, entrepreneur and author Tony Melvin said that failing to dodge payment charges is one of the fastest routes to debt difficulty.

“Money management is more of a time game than anything else.

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Aussies heading off on holiday in the coming months need to wise up to the risks of using their credit card overseas.

While credit cards are often touted as a safer alternative to carrying cash on holiday, it is important to remember that in certain circumstances, withdrawing cash and making payments overseas can have costly repercussions.

The Age reports that many travellers have touched down on Aussie turf to discover that they have been charged repeatedly for taking out money at foreign ATMs. Gold Coast resident Shannon Murphy said she had to stump up $150 in transaction fees after her holiday.

“I was aware that there would be bank charges but I was shocked at how high they were and how quickly they add up.

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Concerned about employment prospects, many Australians were reluctant to take on new debt in May, the latest figures from the Australian Bureau of Statistics (ABS) show.

According to the group, total personal finance lending for the month stood at $6.158 billion, down 0.9 per cent on the previous month.

But while lending on items such as credit cards and personal loans was down, low-interest home loans were still proving popular.

Month on month, the value of home loans handed out in May rose three per cent to stand at $17 billion.

Commercial finance also registered a rise, suggesting that lenders may be opening their doors to businesses more readily as the economic storm clouds lighten.

Speaking to the Age about the figures, Nomura International’s chief economist Stephen Roberts said: “There’s plenty of evidence that people are winding back on credit cards.”