Around 25% of people are expecting to pay bills late during the next year, a study published today by Dun&Bradstreet indicated.Of 1000 people surveyed, 35% said that if they were short on cash they would miss paying a television bill, with 27% missing
Around 25% of people are expecting to pay bills late during the next year, a study published today by Dun&Bradstreet indicated.
Of 1000 people surveyed, 35% said that if they were short on cash they would miss paying a television bill, with 27% missing a mobile phone bill, and 20% saying they would skip a mortgage payment.
The study revealed many people were unaware of the ramifications of playing bills late, D&B said.
Late payments could be listed on credit reports, damaging people's credit profile, with the law allowing payments to be listed if they were 30 days overdue.
About six out of 10 people said they would be more likely to pay bills on time if they knew their behaviour would negatively affect their credit profile, D&B said.
Among people aged 35 to 49, 34 % said they would be paying a bill late in the next 12 months, while for those aged 50 to 64 the figure was 17%.
D&B New Zealand general manager John Scott said credit providers relied heavily on a person's credit history when deciding whether or not to grant credit.
"Therefore payment punctuality is vital and a person's credit rating is akin to a lender's crystal ball." Mr Scott said.
"Mortgage lenders, banks, utility companies, telcos and various other lenders all follow the same formula, evaluating an individual's credit history to gauge their financial personality. So it is important to have a good bill-paying record."
During the past year, 21% of people settled credit card accounts late, and 20% paid home phone bills late, 19% were late in paying mobile phone, pay television and internet bills.
The study found 47%t of people said they made late payments because they did not have enough money, while 31% said they forgot to pay.
