NZers more wary of debt post recession - survey
People are less willing to take on debt in the wake of the global financial crisis, a new survey shows.
Most New Zealanders are less willing to take on debt in the wake of the global financial crisis, a new survey shows.
The survey, commissioned by money guide Sorted (run by the government's Retirement Commission) showed 56 percent of New Zealanders were less inclined to take on debt since the recession and only four percent were inclined to take on more.
The Nielson survey of 717 people showed 35 percent of people had an unchanged attitude towards debt as a result of the recession.
Sorted spokesman David Kneebone said it was pleasing the recession was having a lasting impact on New Zealanders’ attitudes towards debt and money management.
"If the downturn has had a silver lining, it’s this much healthier attitude towards unproductive debt.
"Before the recession New Zealanders were hungry for credit, often borrowing to finance their discretionary consumption at high interest rates," Mr Kneebone said.
The survey's results were backed up by Reserve Bank figures which showed New Zealanders were spending 99 cents for every dollar earned before tax compared to over $1.10 for every dollar in March 2007.
Total consumer debt in New Zealand stands at $11.96 billion, which is made up of hire purchase, store cards, personal term loans, credit cards and overdrafts.
"Although it’s pleasing that many New Zealanders have changed their attitudes to debt – a lot of dumb debt still exists," Mr Kneebone said.
The survey also questioned people's attitudes towards debt with 26 percent saying they planned to manage their debt differently over the next 12 months.
NZPA
Mon, 06 Jun 2011
Mon, 06 Jun 2011
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NZers more wary of debt post recession - survey
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