Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


New Zealanders Changing Credit Card Habits

New Zealanders Changing Credit Card Habits

Auckland, 20th July 2005 – New Zealanders are changing they way they use their credit cards, controlling them and paying off debt more regularly, a new survey commissioned by MasterCard International shows.

The nationwide survey of 500 New Zealanders conducted by Colmar Brunton in May 2005 shows that credit card usage for day-to-day purchases and payment of regular bills has increased while there has been a drop in the proportion of credit card holders using their cards for emergency and large one-off purchases.

Bob Whiddon, senior vice president and country manager, New Zealand, MasterCard International says the survey findings are backed up by Reserve Bank data which demonstrate that more than 99% of what was charged to cards over the year was repaid in the same year or was sitting in the interest-free period.

“The Reserve Bank data shows that overall in the 12 months to April 2005, spending increased 10.5% (from $20.1 billion to $22.2 billion) however the true borrowing - or outstanding balances incurring interest – only went up by 6.9%.”

“The survey also demonstrates that across most types of purchases people made with their credit cards, the results were generally stable or declining slightly, except for day-to-day purchases and payment of regular bills, which increased across all age groups from 47% a year ago to 50% and 14% a year ago to 19% respectively,” said Mr Whiddon.

He says previously people have reserved their cards more for emergency purchases or booking and paying for travel, but this is changing.

“New Zealanders are becoming increasingly financially literate and realising credit cards are an extremely convenient way to pay for everything that matters – with the additional benefit of no EFTPOS fees.”

“The other advantages of paying bills with a credit card are the consolidation of all payments on one statement, making monthly budgeting less hassle; the potential to earn rewards points and have more personal security in their daily transactions,” he says.

Whiddon says the Reserve Bank figures show that New Zealanders’ credit card debt is 2.2% of total New Zealand debt – this compares with 2.3% a year ago.”

He describes the findings as a strong indication of the good money management abilities of the vast majority of New Zealanders.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news