The head of consumer advocacy at Resi Mortgage, Lisa Montgomery, said there had been an 8 per cent increase in those wanting to consolidate debt among the 700 customers surveyed about their finances.

Since September, the Reserve Bank of Australia has cut official interest rates by four percentage points to a 45-year low of 3.25 per cent, while banks have lowered their standard variable mortgage rate by an average of 3.75 percentage points.

''Most people were displaying a conservative approach, but really wanted the opportunity to take advantage of the lower interest rates,'' Ms Montgomery said.

''People in the short term are looking to be prudent, but in the long term they really want to take advantage.''

Six per cent of respondents said they would use the lower rates to take on extra financing to improve their home, while there was a 9 per cent fall in those planning to buy a new family house and a 11 per cent decrease in those planning to buy an investment property, the survey said.

The rate cuts since September meant borrowers were $774 a month better off on a $300,000 mortgage taken for 25 years.

''The pressure is off there, but they have become more prudent. There is still that idea in the back of the consumers' minds that this is a not long-term interest rate environment,'' Ms Montgomery said.

The reserve bank said in its half-yearly Financial Stability Review last week that the finances of some households had improved recently due to low interest rates.

''The ratio of interest payments to household disposable income is likely to fall from its peak of over 15 per cent to around 11 per cent in the March quarter 2009: a further decline should occur in the June quarter as the full effect of earlier falls in interest rates flows through,'' the bank said in the review.

It noted a change in sentiment to a more cautious consumer over the past year.

''Spending on credit cards has slowed sharply, to be up only 1 per cent over the year to January 2009,'' the central bank said.

''In contrast, spending on debit cards was up by more than 15 per cent over the same period.'' AAP