nz'ers getting on top of their debts, well some of them

[eri]

According to NZIER analysts, we used to spend $1.10 for every dollar we earned two years ago. That's now 98c, which is a stunning improvement. NZIER principal economist Shamubeel Eaqub said he never expected to see such a large turnaround in our spending patterns.

http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=10723874

[One]

If, however, you answer "yes" to two or more of these questions, then you really need to question your reliance on debt:
...
*Have you bought consumer goods by extending your mortgage or using revolving credit in the past two years?

I find this bullet point totally incomprehensible. We've got an RC on our PPOR. Everything we buy comes from the RC. Heck, our groceries come from extending the mortgage. That's the whole point of having an RC!!

I think what gets me is that so many people seem to treat a mortgage as different to any other debt. So if you spend 5 years paying off a mortgage at minimum rates while saving separately for a holiday, you're being good. But if you spend 5 years paying off the mortgage faster and then put the holiday on an RC, you're "extending your mortgage" and that's bad. Grrr.

<end rant>

Interesting article, other than that.

[Perry]

It's quite a trick for writers of such articles.
There are too many aspects that either fall
foul of generalisations, or will not fit anyone
in the average Jill/John Citizen category, let
alone a PI!

[mortgage broker]

A revolving credit is not for everyone, but I have seen many of my clients use them to reduce debt over the long term. If I help a client review their rates or structure and find that the revolving balance has not moved, I suggest taking a floating home loan with an ap setup for additional payments. Then the client is in control of the ap but can not redraw very easily.

[foss]

not everyone is disciplined with debt and certainly RC. LL's with RC's are probably a lot more disciplined. it's all in the eye of the beholder!

[One]

Oh, sure, but I think treating mortgage debt as "special" encourages people to use RCs badly. I've found an RC helps me be disciplined about repaying the mortgage. It means our day-by-day bank account has a nasty high negative balance, so it's a constant reminder that we're in debt!