Interest rates are falling and saving levels are increasing but a consumer credit bureau warns Christmas could still be financial minefield for households.
Dun & Bradstreet's (D&B) Consumer Financial Stress Index has stabilised at two year low, but the firm warns there is usually an increase in the number of repayment problems after Christmas.
"In January this year, the volume of debt referrals to D&B grew by more than 15 per cent from the previous quarter," D&B corporate affairs director Danielle Woods said.
"The consequence of missed bill payments takes on particular significance this year with new credit laws providing scope for banks to begin recording bill payments that are made five-or-more days late."
However, Ms Woods said recent negativity about the economy had encouraged consumers to reduce their spending and pay down debt.
"The economy's slow steps forward this year have forced consumers to rethink the way they manage their finances," she said.
"With negative economic news circulating for the majority of 2013, particularly about job cuts, consumers have focused saving more money, and getting on top of their debts.
"While this behaviour has had a detrimental impact on sections of the economy such as household credit growth and retail sales activity, the flip-side has been an improvement in consumers credit position."
The Consumer Financial Stress Index was 11.8 points in September, a slight increase from 11.5 points in August.
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