Household savings in Australia grew unexpectedly by more than 17% in the month of June, according to the figures released by the Melbourne Institute today. The data also revealed that the household savings were reported up in the quarter ended June this year. The Melbourne Institute also said that credit cards have become the major cause of debt in Australia for the first time in almost four years.

The Melbourne Institute household financial conditions index was reported at 33.7 points in the month of June, increasing by 17.2% while it was reported at 28.8 points in March this year.

Another survey conducted by the Melbourne Institute revealed that credit card debt overtook mortgage debt as the main form of household debt in the month of June. The survey showed that 36.6% respondents found credit card debt as their main debt in June, compared to 33.9% in the month of March.

"This is the first time since November 2006 that household nominate credit card, and not mortgage debt, as their main form of debt," said Dr. Edda Claus, research fellow at Melbourne Institute.

The survey also showed that 48.8 % of Australian households saved part of their income in the month of June this year, compared to 46.2% in March.