Couple of canaries going off in the coal mines over the past few days.
Ominous warnings actually, of how tight things are getting out there in the real world.
First off...the Centrix figures showing how many people are doing Christmas on credit this year. It is normal for people to borrow a bit here and there to...smooth out if you like...the household budget over the heavy spending period.
Credit cards were up nearly 12 percent...Buy now pay later jumped 7...personal loans are up 3 percent. This is a seasonal thing...quite normal for a November month. But Centric said this...and I precis...“there will be a segment stretching beyond their means".
More of a tell-tale sign though...the growing number of people falling behind with their debt. That's mortgages in arrears or car loans or credit card debt that's not getting paid down.
The monthly count of people behind on their payments is up...not a lot...I don't want to over-egg this...but year-on-year arrears have increased 6.1%. Mortgage arrears are up by a quarter year-on-year...25 percent...and that is bad.
Higher interest rates are obviously driving that, and there are still more people yet to roll off those cheapo post-covid deals. Now we learn that people are increasingly turning to their KiwiSaver money...the retirement nest-egg.
Hardship withdrawals have almost doubled in the past year. And that's crap, because it's borrowing from your own future...the Retirement Commission reckons more than half of retirees now say they're in financial difficulty.
Conclusions?
It's tough, and getting tougher...these figures are the beginning of the trend, the bottom of the curve. As the PM said on Hosking the other day, it's likely the new Government has inherited a recession.
Solutions...Christ, don't ask me, I'm not a politician.
See omnystudio.com/listener for privacy information.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!