News | Features
4 Jul 2025 12:54
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business > Features

    Wise up to clear credit card debt

    While Kiwis’ attitudes towards consumer debt have become healthier in recent years, interest on credit cards is still costing some New Zealanders dearly.


    In total we pay around $650 million in interest on our credit cards each year. For a population our size that’s a big interest bill. Imagine how much better off we would be if that $650 million was in our own bank accounts, going towards achieving our own goals.

    The good news is that Kiwis are waking up to the fact that high interest consumer debt is dumb debt. Reserve Bank figures show consumer debt is declining and recent Nielsen research shows Kiwis’ attitudes towards debt have changed as well. The research found 56% of New Zealanders are less inclined to take on debt since the recession, and over the next 12 months 26% intend to change the way they manage their debt.

    But while our intentions are good – it’s clear we have a little way to go before our debt is under control.

    Credit cards can be a great way to pay if they are used wisely – that means paying them off in full within the interest-free period. One way to control this is to reduce the credit limit you have to one you can afford to pay back each month.

    While credit card statements show that only a minimum payment is required, don’t take this as the amount you should repay. The minimum may be as little as 2% of the outstanding balance so paying just this will mean interest rapidly adds up on the remaining balance. It grows quickly because the interest rate is high – around 18% on average.

    At the recent Financial Literacy Summit in Wellington, Retirement Commissioner Diana Crossan challenged financial institutions to include more information on credit card statements showing consumers how long it will take them to repay their credit card debt and the total interest they will be charged if they only pay the minimum due.

    Until lenders provide this information, it’s a good idea to wise up. Use the Credit card calculator on sorted.org.nz to see how different repayments can affect the total interest you pay and how long it takes to clear your credit card debt. Once you see the impact, you’ll see you’ll have more money to use as you wish if you pay your credit card off in full each month.

    © 2025 sorted.org.nz, NZCity

     Other Features News
     10 Sep: Spring clean your finances
     13 Aug: Plan ahead to give yourself a debt-free Christmas!
     07 May: Ways to prepare for the unexpected
     30 Mar: Time for a financial progress check
     10 Feb: Studying up on NZ Super
     10 Jan: Managing the back-to-school bills
     10 Dec: Stay in charge of your Christmas spending
     Top Stories

    RUGBY RUGBY
    Former All Black Mils Muliaina believes modern players are far more adaptable between positions than back in his day More...


    BUSINESS BUSINESS
    Central Otago's Cardona Hotel is on the market for the first time in more than a decade More...



     Today's News

    Rugby:
    Former All Black Mils Muliaina believes modern players are far more adaptable between positions than back in his day 12:37

    Health & Safety:
    ADHD meds are in short supply. Here's why, and what can you do about it 12:37

    Entertainment:
    Henry Golding thinks Charlize Theron is a "rare commodity in Hollywood" 12:36

    Entertainment:
    Cardi B feels proud of her Whipshots success 12:06

    Rugby:
    Fourth seed Jack Draper has been ousted by 2017 finalist Marin Cilic in the second round at Wimbledon 11:57

    Entertainment:
    Liam Gallagher has no desire to perform on Glastonbury's Pyramid Stage 11:36

    National:
    NZ will soon have no real interisland rail-ferry link – why are we so bad at infrastructure planning? 11:17

    Cricket:
    England finishes day two of second Test at 3-77, India scores 587 in first innings 11:17

    Politics:
    The Pasifika Medical Association continues to refute allegations of impropriety, over its funding of Moana Pasifika 11:07

    Entertainment:
    Jake Paul wants the "challenge" of fighting Anthony Joshua 11:06


     News Search






    Power Search


    © 2025 New Zealand City Ltd