NZ families fret over fraught financial situation – survey
More than a third of families polled anticipate difficulties meeting credit commitments.
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BUSINESSDESK: New Zealand families have become more concerned about their financial situation, with at least a third surveyed in a poll saying they’ll use credit to cover unaffordable expenses in the coming quarter.
The finding comes in Dun & Bradstreet’s consumer credit expectations survey, in which 56% of Kiwi families polled are concerned about their current finances, which is 13% higher than for couples with no children.
More than a third of families polled anticipate difficulties meeting their credit commitments.
The survey had 915 respondents aged between 18 and 64.
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% surveyed say they are less likely to spend on non-essential items such as entertainment or beauty treatments, and for families the figures is almost 70%.
D&B said 70% of those polled are also less inclined to make a new home loan application and more than 80% 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.
“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% of families surveyed expected 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,” Mr Scott said.
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NZ families fret over fraught financial situation – survey
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