More people 'thinking twice' before borrowing for non-essentials - Centrix
Credit agency Centrix says 420,000 Kiwis are behind on payments - down from 432,000 in May - despite rising costs.
The latest Credit Indicator from credit agency Centrix reveals that consumer arrears have hit their lowest level in five years in June, dropping to 10.65 percent of the credit-active population. This improvement is attributed to a decline in both consumer and mortgage arrears. However, 84,000 New Zealanders are still 90 days or more behind on their payments, mostly renters.
Credit conditions are improving, with credit demand remaining subdued and down 7.3 percent year on year. Enquiries for credit cards, retail energy, and Buy Now, Pay later services have also fallen significantly. Monika Lacey, Centrix's chief operating officer, noted that while New Zealand is not out of the woods yet, things are heading in the right direction.
Many consumers are being cautious and thinking twice before borrowing for non-essentials due to economic uncertainty. Business credit demand is softening, with company closures and liquidations remaining elevated in hospitality and retail trade. However, overall business defaults are declining, and the average credit quality of new applications has improved.
For those still struggling, it's advised to reach out to credit providers or financial advisers for assistance in resolving arrears.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
