When it comes to managing our money, and staying out of financial trouble, Kiwis are beating the Aussies hands down, according to new analysis we’ve run, which shows that the number of people declaring bankruptcy has reached a five-year-low, dropping by 15% last year compared to 2016.

And if that isn’t enough cause for celebration, we have approximately half the number of bankruptcies, per capita, compared with our friends across the ditch.

CreditSimple.co.nz spokesperson Hazel Phillips said the five-year bankruptcy low is a positive sign for the New Zealand economy. However, with the change of government and housing prices continuing to rise, Kiwis need to continue making conscious budgeting decisions.

“Our economy has been steadily rising over the past few years, which helps create jobs, boost personal finances and bring bankruptcy levels down,” Ms Phillips said. “The outlook is still good, but there are a number of changes that people should bear in mind: this year we have a new government, new legislations being passed and it’s difficult to predict what will happen to our economy.

“It’s crucial that Kiwis continue to budget and ensure they have an emergency fund to fall back on if personal circumstances suddenly change.

“Having a cushion of money to draw on if you lose your job or enter a tough spot financially means not having to rely on high-interest sources of credit, which can sting you more in the long term.”

Aucklanders need to be particularly careful, with more than double the number of bankruptcies than anywhere else in the country, followed by Christchurch, Hamilton, Napier and Lower Hutt.

Ms Phillips said Kiwis need to be realistic about what they can afford when getting a loan or mortgage and create a repayment plan from day one.

“If you begin to struggle and ignore your bills, it can significantly damage your credit score and can often be the start of falling into bad financial habits.

“There are free budgeting services available in New Zealand that can put you back on track and help you get out of the debt cycle. Asking for advice and getting budgeting help can make all the difference.”

Kiwis can check if their credit health is in shape by getting their credit score for free at www.creditsimple.co.nz. You can read up on everything credit score-related with this comprehensive guide over at MoneyHub.

If you need financial advice, FinCap can put you in touch with free budget advice services wherever you are in New Zealand.

The post Bankruptcies have hit a five-year low (but here’s why it’s smart to stay vigilant) appeared first on Credit Simple NZ.

Credit scores may tell us more about Kiwis than just how good we are at paying bills – our research shows they also hint at voting preferences.

We overlaid New Zealand electorates with average credit scores and found those in National electorates are more likely to have a higher average credit score (652) than those in Labour electorates (621).

The six highest average scoring electorates are all National: Rodney, North Shore, Selwyn, East Coast Bays, Pakuranga and Waimakariri. The three lowest average scoring electorates are Labour: Manurewa, Mangere and Manukau East. The highest scoring Labour electorate is Port Hills (713), while the East Coast takes the title of lowest scoring National electorate (566).

The single highest scoring electorate is North Shore, with an average credit score of 735, while Mangere has the lowest average score at 487. The sole ACT electorate, Epsom, holds the seventh highest average credit score.

Credit Simple spokesperson Hazel Phillips says the research provides an insight into one aspect of voters’ financial lives and the issues that will likely be important to them as we approach the election.

“Credit scores are a key indicator of credit health,” she says. “New Zealanders with low scores are likely to have trouble accessing credit such as mortgages, loans and sometimes even power and phone contracts. They’re also more likely to pay high interest on any loans they can get.”

“Conversely, those with high credit scores will score low-interest deals and have more options when it comes to credit. Our research suggests these levels of credit freedom may play a role in the policies and parties New Zealand voters support,” she adds.

The post State of the nation: National voters outdo Labour supporters when it comes to credit scores appeared first on Credit Simple NZ.

Living life large while on holiday doesn’t mean blowing your budget. It’s possible to enjoy every minute of your well-deserved break and possibly come home with cash to spare.

Here are our tips to travelling well while spending less:

1. Package it up

There was a time when the phrase ‘package deal’ made us think of budget airlines, cramped hotel rooms and noisy, sunburnt tourists. Now, thanks to companies like Luxury Escapes, it’s easy to nab a great deal to an even greater location. To save money while you’re away, look for deals that include food, pampering, activities and transfers. A word of caution: if you don’t have an all- inclusive deal, research the hotel and make sure that the dining options suit your budget. There’s no point in paying a cheap rate for a room if you’re only going to spend the equivalent on food every day.

Save: $$$$$

2. Set a budget

It sounds obvious, but set a budget before you go on holiday. Factor in things like food, alcohol, activities, travel (including hotel transfers), souvenirs, gifts and duty-free. Give yourself something like a 10% buffer so that you don’t feel the pinch if you go over. If you stick to your budget, that extra 10% or so will feel like extra money in your wallet – and you can treat yourself to a post- holiday massage as a reward.

Save: $$$

3. Get a travel money card

No one wants to come home from holiday to unexpected bank fees. Before you travel overseas, check with your bank to find out what charges you may be up for. Or consider getting a travel card. They are usually accepted everywhere a credit or debit card is accepted and you load them up with cash before you go so you can only spend what is on the card. The perks are, you avoid substantial bank fees and you can set the budget you want to stick to.

Save: $

4. Dine out

What better way to experience a new destination than to taste local food? Skip expensive hotel restaurants and head out to some local restaurants. Ask around for recommendations – and don’t just ask fellow tourists. Chat to some locals for the down-low on where to go for great cheap eats.

Save: $$

5. Stay in

You don’t have to eat every meal out. Book an apartment or room with a kitchenette and cook your own meals. Even if you just make your own breakfast or lunch a few times, you will save.

Save: $$

6. Research, research, research

Before you travel, read up on all the things you want to see and do. If you have a plan, you’re less likely to waste money on activities that turn out to be, well, a waste of time. Leaving more time – and money – for you to sit back, have a mojito and think about the next holiday you’ll take with the savings you’ve just made.

Save: $$$

The post Six ways to save money while on holiday appeared first on Credit Simple NZ.

What’s in a name? When it comes to your credit score, it could be more than you think.

Here at Credit Simple, we’ve got access to a wealth of data around credit information and demographics. So we thought we’d look into first names ranked by credit score.

Names such as Beryl, Joan and Muriel might sound old-fashioned, but they’re winning in the health stakes when it comes to credit scores. Enid, Joan and Winifred take out the top three spots for the highest scoring names (all are in the 800 range by score average) while newer and more creative names such as Cheyenne, Tyson and Junior are at the bottom of the list (Cheyennes average a 373 score). And Krystal with a K scores lower than Crystal with a C.

Women generally have higher scores than men and this shows across the top 10 list – all of which are female names. And when broken down by generation, women still lead; names such as Sheila, Gaynor and Philippa are the top three for Baby Boomers, while Hilary, Lynley and Jillian lead Gen X.

High-scoring names also show the trend of a changing multicultural society, with Asian names featuring heavily in the top Gen Y bracket: Jing, Yan and Ying score 605, 599 and 598 respectively.

CreditSimple.co.nz spokesperson Hazel Phillips said it was a very close race between women and men when comparing average credit scores, and women are actually one step ahead across all generations.

“The data shows that overall, women have an average credit score of 621 compared to 617 for men,” Ms Phillips said. “This is consistent across generations: Gen Y we see 483 for women compared to 481 for men; Gen X, women score 609 while men score 606; and Baby Boomer women score 722 while men score 720.”

Ms Phillips said that although women tend to average higher than men, the top credit score by name is largely reflective of age.

“Older names popular in previous generations such as Enid, Joan, Winifred, Beryl and Muriel all rank in the top 10, which shows your credit score typically gets better as you get older. As people age they tend to become more financially stable and responsible, and have a longer credit history which helps raise their credit score.”

Ms Phillips said that no matter what your name, knowing your credit score is the best place to start when it came to credit health.

“Regardless of your name or gender, it’s important to know your credit score to determine how credit-worthy you are, including what you might need to do to improve your score if it’s low, or how to use a good credit score to get a better deal on with banks and utility providers.”

You can check if your credit health is in shape by getting your credit score for free right here at www.creditsimple.co.nz.

The post What’s in a name? Beryl, Joan and Muriel take out the top spots for credit scores ranked by name appeared first on Credit Simple NZ.