Kiwis are spending more on their credit cards to keep up with the rising cost of living, prompting a warning from a financial expert who says it won’t be sustainable in the long term.
The outstanding balance on personal credit card debt has risen from $5.495 billion in May 2022 to $5.63b in May this year, Reserve Bank (RBNZ) figures show.
Credit card spending fell during the pandemic as people paid down their debt as they couldn’t spend money as easily during lockdown periods.
But since September outstanding balances have risen each month for the same comparable month the year before.
Personal finance lead at Sorted, Tom Hartmann, said Kiwis appear to be using credit debt to handle cost of living pressures, based on data from credit bureau Centrix.
We are trapped in a banal debate about drunk driving Ministers, counter productive get tough on crime cheerleading bilingual road signs, co-governance and alienating Trans rights rhetoric!
People struggling to make ends meet are not sitting around the kitchen table cancelling people for misusing pronouns.
The debt that many first time home owners are being strangled by as over heated house prices are now met with ever increasing interest rates, people are using their credit cards just to pay the bills and the cost of living feels like you are being mugged every time you go to the supermarket.
The woke middle class activists have been tricked into providing the right with culture war ammunition that is now being shot back at us.
People struggling to make ends meet are screaming for solutions and are voting against their economic interests for the Right when the political project of the Right is to underfund public services, complain about those underfunded services and then promote privatisation as the solution to those underfunded services!
The real power struggle in NZ isn’t Left vs Right, it’s between the Professional Managerial Class Consultants vs a self serving Public Service!
The Professional Managerial Class Consultants push to ensure corporate interests like their profit margins and dominant market share are always protected and woven into any watered down regulation while the self serving Public Service fight for more money to fund their latest glass palace.
We face an existential crisis in the form of the climate and the demand to radically morph into adaptation mode is far greater than any political party is currently envisaging.
Your anger, cynicism and fury at the political failures is legitimate but let’s be clear, a National/ACT Government is no solution to the problems we face, they will only exacerbate them.
Dear Kiwis – your debt and under regulated capitalism is what’s killing you, not co-governance, not bilingual signs, not alienating Trans activists!
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