Significant numbers of Aussies will use the cash received from the stimulus package to tackle their credit card debts.

In research commissioned by St George, just over a third (35 per cent) of people are planning to use the government handout to repay credit cards and personal debt.

However, those looking to do more to get their finances back on track may also want to compare credit cards for a competitive deal, Australian Associated Press reports.

And around one in ten (nine per cent) may be taking advantage of recent interest cuts by the Reserve Bank as they plan to put such cash towards mortgage repayments.

Overall, just $2.6 billion of the total $7.7 billion handout is set to be spent.

“There is no doubt the current economic climate is causing many people to act cautiously with all financial transactions and some are choosing to take a more conservative approach to this one-off cash payment,” Andrew Moore, spokesperson for St George, points out.

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Credit card consumers are being reminded that there are a number of methods at their disposal which can help them to quickly generate short-term cash.

An article on MoneyAU.com points out that although a cash advance from an ATM can provide money instantly, the high rates of interest attached to such a move tends to make doing so an expensive option.

As such, the publication suggests that Aussies opt for a money transfer, which sees cash move from a credit card to a bank or loan account without the use of a cash machine.

In doing so, people are likely to find that they still qualify for zero per cent balance transfer deals, something that could be of interest to those looking to compare credit cards.

A previous article on MoneyAU.com revealed that building a positive relationship with a bank could be an effective way for people, especially younger Australians, to improve their chances of successfully obtaining credit.

Faisal Shahzad’s alleged terrorist plot — which involved detonating a homemade bomb in New York City and then fleeing to Dubai — was apparently paid for in cash.

Based on news reports, Shahzad used hard currency to both buy a truck (which would eventually house the bomb) and pay for his Dubai-bound flight out of the country. Cash might seem an odd payment choice, considering the popularity of debit and credit cards: The most recent Federal Reserve data shows that noncash payments (including debit and credit cards) in the United States totaled $75.8 trillion in 2006, increasing at a rate of 3.9 percent per year since 2003.

However, experts say some terrorists have good reasons to prefer cash to payment cards. Read full article…