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One in 3 New Zealanders do not pay off credit cards in full

One in 3 New Zealanders do not pay off credit cards in full

WELLINGTON, Nov. 14 (Xinhua): One in three Kiwis do not pay off their credit cards in full each month, while more than one in 10 respondents said they were comfortable with credit card debt of up to 10,000 NZ dollars (6,856 U.S. dollars), a study from credit scoring company Credit Simple said on Tuesday. Credit Simple analysis from the past five years found that men are more likely than women to have a credit card default on file, as men account for 56 percent of credit card defaults, the study showed. People aged between 21 and 37 are most likely to have a credit card default, accounting for 50 percent of all credit card defaulters, whereas more financially-settled Baby Boomers, aged between 53 and 71, account for 16 percent of defaults, it said. “We’re a nation that’s far too comfortable with ongoing credit card debt, according to new research that shows many of us are treating our cards like a never-ending loan,” Credit Simple spokesperson Hazel Phillips said. “It’s concerning to see the level of credit card debt New Zealanders are stacking up, particularly when credit cards tend to have high interest rates,” Phillips said. The New Zealand average monthly take-home pay is 3,000 NZ dollars (2,057 U.S. dollars) after tax, meaning a small credit card debt could be damaging to the average household, she said. Across the regions, people in Northland are most likely to pay off their credit card each month, while 83 percent of respondents on the West Coast and 61 percent in Gisborne were comfortable having an ongoing, unpaid credit card balance, the study showed.

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