Consumer credit demand falls while arrears rise, Centrix CEO reports

Consumer credit demand is down 2 percent compared to last year, as households focus on essential spending. Arrears have increased by 3.5 percent, particularly for necessities like power and home loans. Centrix chief executive Keith McLaughlin noted a recent decline in arrears over the past few months, indicating some debt repayment. However, businesses are struggling, with credit defaults rising by 16 percent. Looking ahead, McLaughlin anticipates increased discretionary spending as interest rates and inflation decrease. He also mentioned that arrears typically rise again in early next year as financial pressures return.