Monika Lacey: Centrix COO on the downward trend in the number of people behind on their payments

People appear to be getting a better handle on their financial situations. 

The latest Centrix figures for July show overall the number of people behind on their payments fell month-on-month by nine thousand to 456 thousand. 

Chief Operating Officer Monika Lacey says there's also positive signs when it comes to those who are several months behind. 

She says that number is decreasing too, which indicates people are starting to manage their financial positions quite well. 

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Episode Transcript

Speaker 1 (00:00):
Centric data.

Speaker 2 (00:01):
This is for July month on months shows consumer areas
how many are behind on payments falling by nine thousand
to four hundred and fifty six thousand. So that's good,
but company liquidations are up. Monica Leces, the Centric's chief
operating officer.

Speaker 1 (00:15):
Good morning, Monica mo Ryan.

Speaker 2 (00:18):
Let's start with the bad news first, the liquidations three
hundred and eighty three liquidations for the second quarter.

Speaker 1 (00:23):
Where are they? What types of companies?

Speaker 3 (00:27):
Yeah, look, I think businesses have had a really rough rise,
you know if you think about COVID and the impacts
of that head on them. And then now obviously we're
in this recession where consumers are doing the right thing
and coming back spending, which we're seeing the results of
the consumer areas front. But what that does mean is
that businesses are impacted because people just aren't out there

(00:47):
spending money like they would have been otherwise. So naturally
we're seeing a larger number of these liquidations fall in
the Auckland region because of course that's our biggest business
sector in the country, and it's impacting the traditional market
seed expects, so construction, hospitality, and retail.

Speaker 1 (01:06):
Okay, so that's the bad news.

Speaker 2 (01:08):
The liquidations going out, But what about the consumers getting
on top of their debt? But you know, is that
significant the drop of nine thousand to four hundred and
fifty six thousand.

Speaker 3 (01:19):
We have seen some volatility this year from months to months,
but the really pleasing news is that the overall trend
is trending down. So I think that that's really positive.
I mean, we're talking about four hundred and fifty six
thousand New Zealanders in some state of areas, and eighty
two of the eighty two thousand are in the linquency,

(01:41):
so ninety days or more overdue. So it's quite a
low number by comparison to the population. So overall New
Zealanders are doing a quite a good job of managing
the financial position.

Speaker 2 (01:52):
What do you read into the five percent increase in
credit card applications for July? What does that tell us?
Are people poised to I don't know, get it new
couch or is it for basic things to fix a car?
What's the general vibe there?

Speaker 3 (02:05):
I don't really have that's behind what is ending that on?
But I can tell you that the Responsible Lending Code
that directs lenders on how they should be assessing individuals
applies protections to consumers. That gives us some comfort that
you know they can actually afford to pate that back,
so I think they'll be okay.

Speaker 1 (02:24):
Monica. Thank you.

Speaker 2 (02:25):
That's Monica Lacey, the Centric's chief operating officer.

Speaker 1 (02:28):
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Speaker 2 (02:33):
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