Quarter of Kiwis plan to pay bills on credit cards

More than a quarter of New Zealanders will use their credit cards to pay bills from July to September, a survey by a credit reporting company suggests.

Dun and Bradstreet's consumer credit expectations survey, released today, found 28 per cent of the 905 New Zealand adults surveyed in the online study would spend money they didn't have to pay bills in the coming quarter.

It also found 45 per cent of the population could only last a month on their savings if they lost their job.

Young people (18 to 34) were especially vulnerable, with 55 per cent unable to afford to live for four weeks if they lost their jobs.

Researchers found younger people more likely to spend money they didn't have, with 34 per cent of people 18 to 34 and 36 per cent of those surveyed between 35 and 49 saying they would use credit for things they couldn't afford.

Of those over 50, however, only 19 per cent said they would use credit.

Thirty-six per cent of the survey respondents said they were going to cut back on spending, while 13 per cent said they would spend more.

Fifty eight per cent said they were planning to make a major purchase, but had put it off and held on to their money.

- NZPA