Mark Smith: ASB senior economist on how much debt servicing will cost households by 2023

Heather du Plessis-Allan Drive

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1+ y ago 3:10

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Higher debt servicing means Kiwis are looking at an extra $80 being added to household budget costs by 2023, ASB economists predict. That could go up further to $100 by 2024, according to speculation.

On top of that, people will need an extra $70 per week to fund outgoing costs unless they adjust their spending patterns. This is due to rising interest rates making the cost of living go up further.

ASB senior economist Mark Smith says that these impacts will affect people differently, with highly indebted households and recent home-buyers more likely to be hit harder by these costs.

Mark Smith also notes that incomes have been keeping steady pace with living costs and households will have to readjust their spending habits to avoid being hit too hard.

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