Sharechat Logo

NZ families fret over financial situation, Dun and Bradstreet survey shows

Tuesday 31st July 2012

Text too small?

New Zealand families have become more concerned about their financial situation, with at least a third saying they'll use credit to cover unaffordable expenses in the coming quarter, according to Dun & Bradstreet's consumer credit expectations survey.

The survey found that 56 percent of kiwi families polled are concerned about their current finances, which is 13 percent higher than for couples with no children. More than a third of families anticipate difficulties meeting their credit commitments.

The survey polls expectations for the July-September quarter. It showed a majority of New Zealanders are shying away from discretionary spending and loan applications. Some 66 percent of kiwis say they're less likely to spend on non-essential items such as entertainment or beauty treatments and for families the figures is almost 70 percent.

D&B said 70 percent of those polled are also less inclined to make a new home loan application and more than 80 percent don't plan to apply for other forms of credit such as credit and debit cards, personal loans, mobile phones and pay-television subscriptions.

"Consumers are certainly feeling the pinch, with sentiment adversely impacted by economic and political uncertainties in the troubled euro zone, along with softer domestic conditions," D&B New Zealand manager John Scott said in the statement.

"We see this reflected in a significant proportion of families expressing concern over the present financial state," he said. "This is no doubt having a knock-on effect on how likely they are to pay their credit commitments down the track."

Some 36 percent of families expect to use credit to cover unaffordable expenses in the coming quarter.

"We are seeing vulnerable consumer demographics rely on credit cards to meet basic expenses, which can result in an accumulation of bad debt many will struggle to pay down, or even worse, a black mark on their personal credit history," Scott said.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports