Kiwis' debt continues to dwarf household disposable income while household wealth is shrinking as a percentage of household income

It's exciting to see all this debt. John Key's wealth effect is well underway with record debt. We've never been wealthier.

What I'm interested is what percentage of servicing costs starts severely reducing our GDP.

There will come a time not long from now where even the Jones's cannot keep up with the Jones's

Lets put this into plain English ..........

You cannot spend more than you earn and expect to stay out of trouble .

Will not be surprised if National argue that this is a sign of prosperity as people are able to borrow only when they are doing well and rise in household debt is a good indicator.

It is hard to think what will happen once this ponzi is over.

Everyone will be affected and how people remember the mid 1980s crash, will remember the 2017 or 2018 crash or whenever it happens.

and guess which generations will be paying for all that debt, either through a huge mortgages or rent ?

But public debt is low so everything is good. We're not like those European countries with very high public debt and low private debt.

From a Wahington Post contest:
Cashtration (n.): The act of buying a house, which renders the subject financially impotent for an indefinite period of time.

The problem is that post GFC the QE of money was to go into paying down debt and developing export earning business. Instead profit driven banks have directed the money into further inflating non productive assets; due to long term limited supply and incompetent management we been in crises - poverty, crime, dis-functionality; a decision of providing affordable housing in order for our communities to function/work normally I believe is inevitable and harsh economic consequences for those who have been forced to over extend themselves or tried to profit of the back of that plight.

I would say to others who considering setting up in business or in need of an urgent funding - for any reason @ 2% rate to contact JBF via address below;

jbf_info@zoho.com

Go for it. Don’t be deterred if you don’t have any luck with the banks there are funders - out there like JBF who will lend, even if you are not in the best position.

"household debt as a percentage of household disposable income has now risen to 168%"
in other words a DTI of 1.68 x

IMF March 2017

11. The RBNZ’s macroprudential toolkit needs broadening. Exposure limits to high loan-to-value ratios (LVRs) have reduced the potential losses on bank balance sheets if a household defaults. But they do not protect banks against an increase in the number of households defaulting, the probability of which has increased with the rising debt-to-income (DTI) ratios on new loans.
To strengthen household balance sheet resilience and reduce the probability of household defaults under downside shocks, the macroprudential toolkit should be extended to include a DTI or (stressed) DSTI instrument, in line with recommendations by the FSAP. These directly target the most acute household vulnerability.

Household debt at 262.6B and rising at 8.4%
Household income at 156.3B and rising at 4.4%
This suggests that about $13B of income is illusory, not a product of any true economic activity but simply credit creation by the banks.
Moreover, to simply hold the Debt to Income ratio at 168%, credit growth will have to be reduced to 4.4%.