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

 

Do You Need to Take More Interest in Your Debt?

Do You Need to Take More Interest in Your Debt?


According to the latest figures from RBNZ, consumer debt has grown by 7.7% since this time last year, revealing that our appetite for personal debt shows no signs of abating. But when it comes to repayments, consumer comparison site Canstar, warns that all loans are not equal and we should pay close attention to how much it costs us to pay them off.

Canstar general manager Jose George says:

“In addition to sizeable mortgage debt, Kiwis currently have nearly $16 billion worth of personal debt. Below this huge headline figure, we can often get complacent about what we consider to be relatively low levels of individual personal debt. This ‘hands-off’ approach can quickly lead to inflated interest payments or extended repayment periods resulting in even more debt.

“If you don’t want to throw money away un-necessarily, it’s critical that you make sure you’re repaying your debt in the most cost-effective way possible. What’s more, it’s a relatively simple and straight forward thing to jump online and checkout your options.”

The calculations below show the difference in paying off a $10,000 debt over three years, either by credit card(s) or unsecured personal loan:

George continues:

“Being smarter about debt can save money on your regular repayments and the time it takes to pay off your balance. The modern environment of mobile and online banking means it’s quick and easy to refinance debt. There’s so much information available at our finger-tips, we no longer have to put things off or put them straight in the ‘too hard’ basket and to help consumers make informed decisions, Canstar recently compared and rated 53 products from 10 providers. ”


Cast your search net wide

Canstar’s research also found it could work in your favour to extend your search for a personal loan beyond your main banking provider.

“Obviously the deal you can negotiate depends heavily on your personal circumstances” continues George. “As an example, when Canstar compared the average advertised car loan rates, we found you could save over $3,000 with a smaller provider. It goes to the message that doing your research, comparing and shopping around could save you money.”

For further information and a full list of Canstar Five Star Ratings for personal loans, 2017, please visit the Canstar website.


ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Talking Up The Economy: NZD Gains On PM's Mistaken GDP Comment

Her comments were downplayed by her chief press secretary who said she was referring the government's June year financial statements and had "made a mistake." More>>

ALSO:

Oxfam: Drug Companies Cheating Countries Out Of Billions In Tax

Oxfam’s analysis suggests these four companies are shifting profits out of countries where they do their business and into tax havens that charge little or no tax. More>>

Off The Lam: 50 Lambs Reported Lost, Found

The sheep had escaped and merged with another farmer’s flock. The combined flocks had been moved to another property before the farmer realised the missing sheep were included. More>>

Rotting Poles: Commission To File Proceedings Against Aurora Energy

The Commerce Commission has decided to file court proceedings against Dunedin-based electricity lines company Aurora Energy for breaching its regulated quality standards in 2016 and 2017. More>>

ALSO:

Gordon Campbell: On The Rising Cost Of Petrol

As petrol gets more and more expensive, Auckland motorists have several things to blame for it – the slumping value of the Kiwi dollar, Donald Trump’s sanctions on Iranian oil, hurricanes in the Caribbean… But it is simpler and feels better to lay all the blame on the regional fuel tax. More>>

ALSO: