Australians are becoming more cautious with their income - but don't expect them to stop making trips to Bali.
A new survey shows more Australians were saving and paying off their debts last quarter.
But, despite otherwise prudent behaviour, more than half said they were saving for a holiday, the St George-Melbourne Institute survey of household financial conditions found.
St George's head of retail banking Robert Allan said Australians are savvy enough to know a strong Australian dollar means cheap travel.
"I was talking to a customer last week and they were very aware of the strength of the Australian dollar and they know that, actually, it was affordable and it's what they want to spend their money on," he told AAP.
"People will put travel at the top of the list, even ahead of things around the house."
The survey of 1,200 people found three-fifths of households are spending 10 per cent or less of their income paying off debts.
The proportion of households with car loans and credit card debts also decreased.
Mr Allan said people were taking advantage of the historically low interest rates by accelerating their debt repayments.
"Low interest rates are taking off the pressure" he said.
"Interest rates have gone down but they're (Australians) actually paying off more than they're required to do."
But not all debt is falling.
One in five households has at least one HECS debt - the largest proportion since 2001.
And, the financial condition of 18 to 24-year-olds has decreased by close to nine per cent.
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