Wednesday, April 2, 2008

Financial distress 'starting to show' in NZ

Overall defaults on payments were 14 percent higher in the 2007 calendar year than in the 2006 calendar year, Veda Advantage director John Roberts said today. He added that this figure "had escalated to 27 percent for the first two months of this year, compared with the same period of last year".

(Veda Advantage is the largest credit bureau in Australia and New Zealand. It provides credit reporting, credit scoring, and marketing analytics services. The company was previously known as Baycorp Advantage, which was a merger of Australian company Data Advantage and New Zealand Company Baycorp. Source: Wikipedia.)

"If we see that trend continuing, that [will be] an indication there is a fair amount of pressure on the household income," Mr Roberts said. "There is a bit of financial distress starting to show."

The three biggest areas of defaults were hire purchase, credit cards and telecommunications companies.

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