Card debt is hurting

Kiwis continue to face financial difficulties despite the economic recovery, with a third of credit card users preparing to use their cards to pay for otherwise unaffordable items in the coming months.

The finding comes from a Dun & Bradstreet survey of 1038 people called the Consumer Credit Expectations Survey.

The survey found that 18-34 and 35-49-year-olds and families with children are showing signs of financial stress.

John Scott, the firm's New Zealand general manager, says the Christmas credit splurge traditionally results in a significant spike with people struggling with their finances in the New Year.

"Given the pressure that the global credit crisis placed on families' finances over the previous 12-24 months, it's not surprising to see that certain demographics are now struggling under the weight of their spending," says Scott.

He says people using credit cards to make ends meet should avoid taking out new loans in case they default and end up on a bad credit list.