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BusinessDesk: After two years deleveraging, consumers again spurring consumption with more credit

BusinessDesk: After two years deleveraging, consumers again spurring consumption with more credit

Baby boomers and Generation Y have resumed their spending sprees with demand for credit cards and mortgages on the rise following two years of falling demand, according to credit bureau Veda.

Customer credit card inquiries were up about 11 percent in 2011 compared with a year earlier, with baby boomer inquires showing a sharp rise of some 24 percent.

Mortgage inquiries rose about 13 percent from 2010, with Gen Y leading the generational breakdown up 25 percent.

“Consumers are getting their confidence back when it comes to seeking credit again to support their purchasing,” John Roberts, managing director of Veda said in a statement.

Reserve Bank data yesterday showed total credit card billings rose an annual 5.9 percent to a seasonally adjusted $3.08 billion last year, and grew eight months in the year.

The number of consumers defaulting on bills and loan repayments fell by about 18 percent last year when compared to 2010.

Roberts said the commercial sector remains 18 months behind consumers, with New Zealand businesses set to face a 60 day delay when waiting to be paid for goods and services.

“The trouble for businesses is that slow payers have the ability to slow down their businesses – it becomes a nasty downward spiral,” he said.

(BusinessDesk)

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6 Comments

About time - saving is boring!

nothing learned at all by the look of it..
What do they say about Fools and money?

Yippy- i -oh....
Yippy- i- ay....
Ghost-riders in -- the sky......

I suggest the author just wanted something to write about. If anything the long term trend is slowing, but has not peaked. The recent increase is a seasonal change, which occurs anually and its very consistent.
Charts at the bottom of the page.
 

It is a waste of time expecting this report to lead to more than a yawn. Nobody in govt or the RBNZ or Treasury will give a moments concern over this matter. The fact that credit now serves as the nations money supply and means the credit creators are able to exchange their drug for a free chunk of the GDP each year, is undeniable and sickening.
Every govt policy and with Alan Bollard in tow, is aimed at enhancing the credit domination over the economy...even the govt revenue flow is now utterly dependent on the banks credit creation rort.
 

Where is the deleveraging, amount owed still climbing.
Growth in amounts owed still above zero, only below zero for about 6 months.
Credit limits on way up, after falling slightly, more probably due to bad debts and cancelled credit cards.
Deleveraging was a blip, back to normal business now, nothing to see move along.