Citing the latest figures from the Reserve Bank, Canstar said consumer debt has grown by 7.7% since this time last year, revealing that appetite for personal debt shows no signs of abating.
However, when it comes to repayments, Canstar general manager Jose George
warns that all loans are not equal and that consumers should pay close attention to how much it will costs to pay them off.
“Below this huge headline figure, we can often get complacent about what we consider to be relatively low-levels of individual personal debt,” George said. “This ‘hands-off’ approach can quickly lead to inflated interest payments or extended repayment periods resulting in even more debt.”
George went on to say that being smarter about debt can save money on regular payments and the time it takes to pay off a balance.
“The modern environment of mobile and online banking means it’s quick and easy to refinance debt.”
Canstar also urged consumers to extend their search for a personal loan beyond their main banking provider.
This year, Canstar’s annual personal loan analysis included 53 loans from 10 providers to determine which ones offer outstanding value for money.
Brokers give customers choice, Loan Market
Overcoming lending policy is challenging, broker
In addition to sizeable mortgage debt, New Zealanders currently have nearly $16 billion worth of personal debt, according to the latest report from consumer comparison site Canstar.