A quarter of Australians aged 18-24 admit to making secret purchases on their credit cards while the same group are the most likely to get into arguments over credit spending.

Generation Y were the most “untrustworthy” group when it came to credit card activity, a poll of 1,200 consumers by creditcardfinder.com.au has found.

“They were more likely to have a secret credit card or hide purchases than other age groups,” the survey concluded.

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Hiding out-of-control spending from a partner could be a reason for these spending secrets, said the company’s spokeswoman Michelle Hutchinson.

“When you’re in a relationship where your spending affects someone else, keeping a secret could seem like an easier option than controlling your spending urges,” Ms Hutchison said.

“But in reality, you are potentially risking your relationship and cheating yourself out of money you could be wasting on interest charges.”

Young consumers were also more likely to argue about their credit card spending than other generations, the survey found.

How to keep your spending honest

To avoid hiding credit card use or having spending debate with loved ones, there are some rules to follow.

Firstly, ensure your spending on credit doesn’t get out of control in the first place.

To keep you spending in check, the best “rule of thumb” is to find out your interest rate, CHOICE spokesman Tom Godfrey told The New Daily. 

“Our research has shown a lot of our consumers don’t actually know the interest rate if they’re carrying a balance forward,” Mr Godfrey said.

“It has also shown if you’re banking with the big four banks and you’re carrying a balance forward then you are paying too much interest.

“It is always best to pay it off as soon as possible if you can and if you’re carrying a balance forward make sure you pay it down as soon as you can.”

 —with AAP