It’s no secret that Auckland is a very expensive place to live, and it’s getting even worse, with research showing incomes are not keeping up with the increasing cost of living.
A recent report compiled for the Kore Hiakai Zero Hunger Collective shows that a family of 2 adults and 2 children earning the median wage now has $41 less per week than they did in 2023.
Source: zerohunger.org.nz/kamakona
The report examines living costs for low-income households in Aotearoa, focusing on three scenarios: a single adult, a sole parent with two children, and two parents with two children.
It assesses whether these households have enough financial resources for basic living expenses.
The report shows that lower-wage earners continue to struggle in 2024, as wage increases and tax reforms have been offset by other policy changes, leaving families to continue facing challenges in covering essential costs.
But it’s not just lower-wage earners that have less discretionary income to play with. Due to the cost of living crisis and rising mortgage costs, many families on good incomes are struggling to make ends meet.
According to Centrix’s October Credit Indicator, “We expect arrears to rise over the summer period, in-line with forthcoming festive spending and wider seasonal trends”.
Source: centrix.co.nz
Is your disposable income less this year
With less disposable income, it gets harder to keep up with bill and debt repayments, but neglecting these can have serious implications.
During tough financial times, many people prioritise paying rent over making bill payments, and this is understandable.
If this is you, you’re not alone – more than 458,000 Kiwis are behind on credit payments.
But it’s important not to let your debt spiral out of control because the consequences can be serious.
If you miss some loan or bill payments, your credit score will take a hit, and this will make it harder for you to get credit in the future.
You may also be hit with additional fees as a penalty for missing payments, saddling you with even more debt.
How to lower your debt repayments
If your loan payments are a drag on your income, give the friendly team at Auckland Loans a call today.
We specialise in helping people take control of their finances by providing fair, low-cost loans.
Our interest rates are highly competitive, starting at just 9.95%, with loan terms ranging from 6 months to 7 years.
By structuring your loan over a longer term, we can save you significant amounts of money each week.
One way we do this is through a debt consolidation loan, where we pay off your existing debts and combine them into one new loan at a lower interest rate.
Not only is this easier for you, as you only have to make a single loan repayment, but it’s much easier on your wallet.
We’ve had customers that have saved hundreds of dollars per week by taking out one of our debt consolidation loans.
Want to know how much you would save? Try our free online loan calculator to find out.
