20 March 2007

NZ First Joins Call To End Debt Targets

New Zealand First economic development spokesperson Doug Woolerton is applauding the call by the bank workers union Finsec for banks to stop rewarding staff for selling credit card debt to customers.

“With personal credit card debt now in excess of $4.5 billion something must be done to reverse the buy now pay later culture which is emerging in this country,” said Mr Woolerton.

“The problem is increasing with 40.5% of New Zealand adults now carrying credit card debt.

“Another by-product of this practice which New Zealand can ill afford is the upward pressure it places on inflation.

“Financial institutions need to urgently desist from encouraging their staff to commit people to debt which they cannot afford to repay.

“At a time when our negative savings record is in the limelight it should be noted that the practice of personal lending institutions using debt targets is not only contributing negatively to our savings record but to our economy as a whole,” said Mr Woolerton.

ENDS

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