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Debtors finding it harder to pay off debts

Debtors referred to collection agency Baycorp are finding it harder to pay off their debts, with the company also reporting that commercial collections have been particularly strong.Baycorp said today that its figures showed the average debt placed for co

NZPA
Thu, 22 Apr 2010

Debtors referred to collection agency Baycorp are finding it harder to pay off their debts, with the company also reporting that commercial collections have been particularly strong.

Baycorp said today that its figures showed the average debt placed for collection was now $868 whereas a year ago it was $832, an increase of 4 percent.

Debtors had been better at keeping to their undertakings, with 43 percent sticking to their repayments, up 6 percent from last year's lowest rates.

But Baycorp chief executive Geoff Harper said people were taking longer to pay off debt, with only about 10 percent of debtors paying their debt in full in one instalment compared with nearly 20 percent the year before.

The 55 to 66-year-old age group seemed to be struggling to rid themselves of debt, owing an average of $1212 which was an increase of $243 over 2009 and almost double the $696 they owed in 2005.

The average debt for people younger than 25 had reduced from $628 to $611, while the average debt for everyone older than 35 had risen. Across all age groups, the average debt was $868.

Demand for commercial collections had been particularly strong, and summary judgments were up about 200 percent this year, Mr Harper said.

NZPA
Thu, 22 Apr 2010
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Debtors finding it harder to pay off debts
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