Kiwis turn to credit to pay bills

Rising interest rates are putting the bite on New Zealanders, with 36 percent of households planning to use credit to pay for bills and expenses in coming months, according to a new survey.

The latest Dun & Bradstreet Consumer Credit Expectations Survey also shows that 18 percent of respondents expect their debt levels to increase during the September quarter. Less than 10 percent intend to apply for a new credit card, home loan, personal loan or credit limit increase during the September quarter.

D&B New Zealand’s general manager John Scott said the survey revealed both positives and negative.

"It is clear that some consumers are finding it tough making ends meet, while for others, it appears that consumer conservatism has fallen by the wayside and a return to a credit fuelled lifestyle is on the horizon," he said.

Women, middle-aged New Zealanders and those on higher incomes are more likely to experience financial stress during the quarter. Forty three percent of middle-aged New Zealanders said they would use their credit card to pay for otherwise unaffordable expenses during the September quarter.

Thirty eight percent of high income families anticipated a need to put expenses on the plastic during the quarter, compared to 29 percent of low income families.

Forty percent of women expected to need to use their credit cards for bills and expenses, compared to 33 percent of men

- © Fairfax NZ News