Keith McLaughlin: Centrix Managing Director on fewer people being behind on debt payments
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Keith McLaughlin: Centrix Managing Director on fewer people being behind on debt payments
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Fewer people are behind on debt payments.
Centrix's May Indicator Report shows consumer arrears fell in April – it was the fourth month in a row where overall arrears were lower than 2024.
However, the number of consumers who are more than 90 days past due has risen to its highest since July last year.
Managing Director Keith McLaughlin told Mike Hosking they’re starting to see household budgets become balanced.
He says to an extent, it could be due to the dropping interest rates starting to flow through into budgets.
However, it could be a while before we see an easing in the high rate of company liquidations.
Company liquidations are up 30% year-on-year, with 175 recorded in April.
McLaughlin says they should stabilise in the next couple of months, before trending downward.
He says there's an increase in consumer confidence, meaning people are going out and spending more, which will create stimulation for businesses.
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