New Zealand Consumer Defaults Rise, Credit Applications Fall
Originally posted on Bloomberg
New Zealand consumers are making fewer applications for credit and are more likely to default on bills and mortgages as a recession enters its fifth quarter, according to the nation’s biggest credit-checking company.
Applications for personal loans, hire purchases and mortgages fell 12 percent in the six months ended Dec. 31 from a year earlier, Veda Advantage Ltd. said in an e-mailed statement. Mortgage applications alone dropped 20 percent, it said.
Rising unemployment and falling house prices are weighing on confidence and making consumers unwilling to commit to new loans amid a recession that started in the first quarter of last year. The jobless rate may rise to a 10-year high of 7 percent this year from 4.6 percent, the government forecasts.
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