Debt sees pair in caravan

Generation Y woman Lizzy Laing is so sick of being under debt's heel she and her partner are moving out of their flat and into a caravan park.

Despite being university-educated and earning "a little over $30,000" in a central Christchurch firm, Laing's student loan ($45,000), personal loan ($6000), overdraft ($2000) and credit-card debt ($1000) are proving too much.

Laing and her partner, a glazier who earns a little more but has similar debts, find they can survive and just service their debts but have nothing left at the end of the week.

Saving for the deposit on a home mortgage or starting a retirement fund was a far off dream.

"We can't even think about starting a life together," she said.

The pair had discussed leaving for Australia but decided instead to ditch their flat and move into a caravan park for at least six months to get their noses in front.

Laing said the cost of living was rising far quicker than wages. The grocery bill was one of the major culprits in the debt squeeze.

Canterbury University student Amadeus Rainbow said that despite his best efforts -- a student allowance and a part-time job -- he had been forced to take on a credit card and an overdraft just to get by.

His bank had offered to extend his credit but he was trying not to take it, even though he still had to borrow money off his mother for petrol if he wanted to visit her in Invercargill.

Laing tried to buy from vegetable shops and butchers, but found the extra time and money used in petrol negated the cost benefits.

- © Fairfax NZ News