Shopping using debit and credit cards in New Zealand increased during April 2013, Statistics New Zealand said today.

When adjusted for seasonal effects, the value of electronic card spending in the retail industries increased 0.6 percent in April.

"Spending rose in most retail industries during April, with durables and apparel having the largest rises," industry and labour statistics manager Blair Cardno said.

"This is a turnaround from March, when most retail industries had falls. Good Friday and Easter Sunday were in March this year, instead of April. This meant that there were two more trading days than during a typical April month."

The durables industry includes retailers dealing in furniture; hardware and appliances; and pharmacy, cosmetic, and toiletry items. The apparel industry includes retailers dealing in clothing, soft-goods, and footwear.

The largest increases were:

• durables, up $31 million (3.0 percent)
• apparel, up $19 million (7.2 percent).

The largest decreases were:

• consumables, down $26 million (1.7 percent)
• fuel, down $17 million (2.4 percent).

Spending for core retail (which excludes the motor vehicle-related industries) increased 1.0 percent in April 2013.

The total value of electronic card spending increased 1.1 percent in April 2013.

Trends for the total, retail, and core retail series all remain positive. For each series, the rate of increase has weakened in recent months.

In actual (unadjusted) terms, there were 107 million transactions in April 2013, with an average value of $52. The total amount spent across all transactions was $5.6 billion.

Dunedin, New Zealand – The “First Annual Debt Breaker Challenge,” designed to show people how they can enjoy a debt free life without making difficult sacrifices, begins July 1 and runs through November 30, 2013.  According to contest sponsor and financial expert Barry Kloogh, an award of $5,000 will be presented to the individual or family that slashes their debt by the greatest percentage over that period.
“With so many families seemingly trapped in a sea of endless debt, we wanted them to know there’s hope, real solutions and a big reward,” said Kloogh, who has developed a dynamic new computer software called Debt Breaker to help families escape the endless pressures of home mortgage and unsecured debt.  “We’ve incorporated 28 years worth of proven strategies that help our clients to  get out of debt, pay off a mortgage years sooner and build wealth for the future, into an easy-to-use program.”
“I’ve met with so many families who work themselves to death trying to keep up with their mortgage payments and credit card debt, only to keep falling further and further behind.  The good news is that it doesn’t have to be that way.”
Kloogh says that in his experience of working with thousands of families to fix their finances, life typically intervenes to derail their budgets at every turn.  “Let’s face it, there’s always something costly coming up.  Whether it’s an unexpected repair bill, new clothes for the kids, eating out, or taking that trip you’ve been putting off for years – something is always conspiring to increase our debt load,” said Kloogh, whose corporate offices are in Dunedin.  “The Debt Breaker Challenge will help people free themselves of debt in an exciting and easy new way.”
The significant game-changer in people’s lives is the Debt Breaker Program.  “This is a highly personalized software program that our clients are using right now to get out of debt and pay off their mortgages,” he said.  “All they have to do is install Debt Breaker onto their computer, and follow the financial roadmap it provides.  Just as a GPS system keeps us from getting lost, Debt Breaker keeps people on a sound financial course to debt free living in less time than they ever imagined.”
In order to be eligible to win the $5,000 first place award, a person or family must either be a current or new Debt Breaker customer.  “Other than that, there’s really nothing else to do but follow the Debt Breaker Program and let this remarkable software do the rest. 
There’s nothing more satisfying than getting an email from a client who has watched their debt go down and their savings go up on a regualr basis when they use Debt Breaker.  It motivates people to keep doing what they’re doing… because it works!”
From Auckland, Hamilton, Tauranga, Rotorua, Wellington, Nelson, Blenheim, Christchurch, Timaru, Dunedin, Invercargill, and many other cities, Barry says response to The DebtBreaker Challenge has exceeded expectations.

Whether you want to know: How to pay off your mortgage, how to reduce debt, or how to save for the future and still have money to enjoy life today. Debt Breaker gives you the tools to do all that.

For complete details about the First Annual Debt Breaker Challenge, visit http://DebtBreaker.co.nz or call 0800 332 827.

Kloogh also invites you to stop by the Debt Breaker office at 34 MacLaggan Street, Dunedin, New Zealand, 9054.

AUCKLAND, New Zealand (May 7, 2013) – Gold is still a solid investment: New Zealand-based MyGold, a long time precious metals merchant, comments on Cyprian economic crisis. “Dip in gold prices creates ‘golden’ opportunity.”

Cyprus will receive 10 billion euros ($13.8 billion) in aid from the European Union (EU) and International Monetary Fund (IMF), jointly, according to Reuters’ reports. The bailout was approved by lawmakers with a razor-thin majority of just two votes on Tuesday. But unlike Greece, Portugal, Ireland and Spanish banks, Cyprus was the first to dip into consumer savings to help finance the bailout.

“Many have concerns about traditional banking and investing methods, due to the state of the global economy,” says MyGold CEO Richard Elliott. “The Cyprian economic crisis is just one in a long list of recent, international, monetary crises that bring other types of investing to the fore. Investing in gold and silver bullion and coins gives consumers a tangible, proven and safer asset, expected to appreciate over time.”

The expected rise in the price of gold just might be a silver lining, in light of recent market activity. Cyprian economic woes, together with other market influences, became a cause for concern for many, as precious metal slid below $1,500 an ounce for the first time since July 2011, in recent weeks. However, Elliott sees this as a “make-or-break,” golden opportunity: “Buy now, when the price is low,” he says. “We believe that when other investments such as property and stocks are underperforming, due to negative influences such as the Cyprus bailout, the price of gold and silver rise.”

Historical data seems to agree, with many investors seizing such an opportunity during the 2007-2008 UK banking crisis. “If history’s a good indication of what’s to come, gold is still a solid investment.”
For more information on the purchase of gold and silver bullion and gold and silver coins, visit the MyGold website: http://www.mygold.co.nz/bullion/buy-gold/.

MyGold is not a financial or investment advisor.

About MyGold

MyGold is an independent and family owned merchant of precious metals. Conveniently located in Auckland, New Zealand, the company locally manufactures and sources physical gold and silver for Kiwi investors—believing strongly that precious metals, alongside other asset classes, are the optimal hedge and method for wealth preservation. More information about gold and silver is available on the company website: http://www.mygold.co.nz/bullion/buy-silver/.

Contact Information:
Richard Elliott
MyGold
rich@mygold.co.nz
http://www.mygold.co.nz
0800 (GOLD-NZ) 465 369

Dunedin, New Zealand – In the hopes of creating awareness among individuals and families that living debt free is easier than most people think, the First Annual Debt Breaker Challenge was recently announced by Barry Kloogh, a nationally known financial planner based in Dunedin.
“Household debt has reached crippling proportions in our country, and what’s most frustrating to me is that it does not have to be that way,” said Kloogh, who conceived the idea of the First Annual Debt Breaker Challenge.  “Our goal is to show people an easy, proven way for living mortgage and debt free, and motivate them to finally take action so they can begin enjoying life again.”
A cash prize of $5,000 will be awarded to the person or family that reduces their debt by the largest percentage between July 1 and November 30, 2013.  “The Debt Breaker Challenge was designed to open people’s eyes to the secrets of living debt free, paying off a mortgage years sooner, and saving for the future – all without having to change their lifestyles,” said Kloogh, who is a noted financial advisor, speaker and author.
Barry Kloogh and the experts in his Dunedin office have been helping families learn how to live debt free for decades, but he’s especially excited about how easy the Debt Breaker software makes it for New Zealanders to watch their debt drop month after month from the privacy of their home computer or Smartphone.
“It’s always been a struggle knowing that only a small percentage of people who need our financial services can take advantage of them for a number of reasons – not the least of which being logistics,” he said.  “So, we assembled a highly talented group of programmers from around the world to create a software program that, in essence, helps people get out of debt from the comfort of their own homes.  We fully expect Debt Breaker to have a positive impact on the country’s high debt numbers, one family at a time.”
Those eligible to collect the $5,000 prize in the Debt Breaker Challenge must either be current clients, or new Debt Breaker customers.  “We want to prove that people using Debt Breaker will dramatically improve their families’ economic health in ways they never thought possible,” he said.  “Financial budgeting is a bit like losing weight.  We diet and exercise like crazy for a while, but invariably life intervenes and the weight comes back.  Sometimes we need a little help and motivation to lose the weight once and for all, and the same can be said for getting rid of unwanted debt.”
Kloogh says Debt Breaker provides families with a clear, easy-to-follow path for not only staying on budget, but getting rid of unsecured and mortgage debt.  “People love this smart software because they can see it working, right there on the computer – and that provides the motivation people need to keep dropping their debt.
“We’re looking forward to presenting the winner of the First Annual Debt Breaker Challenge with $5,000” he said.  “The bottom line is that with this new technology, there’s no reason for people to fear debt, or to not enjoy living their lives to the fullest today… and even leaving a healthy financial legacy behind for tomorrow.”
From Auckland, Hamilton, Tauranga, Rotorua, Wellington, Nelson, Blenheim, Christchurch, Timaru, Dunedin, Invercargill, and many other cities, Barry says response to The DebtBreaker Challenge has exceeded expectations.

So if you want to know: How to pay off your mortgage and  to reduce debt and still have money to enjoy life today, Debt Breaker gives you all the tools to do just that.

For complete details about the First Annual Debt Breaker Challenge, visit www.DebtBreaker.co.nz or call 0800 332 827.

Kloogh also invites you to stop by the Debt Breaker office at 34 MacLaggan Street, Dunedin, New Zealand, 9054.

New Zealanders appear to have taken to online shopping like ducks to water, Statistics New Zealand said today.

Latest research shows that more than half the people in the country are doing personal shopping online, an increase of 11 percent since 2009.

“The fact that more than 1.8 million people made online purchases in 2012 shows that our Internet use has evolved considerably from sending the occasional email. The Internet is now part of our everyday lives, and Kiwis are increasingly opting for the convenience that the Internet and things like online shopping provide,” information and communication technology statistics manager Hamish Hill said.

When asked about their spending over the four weeks before being surveyed, 1.2 million people said that they had made an online purchase – that’s over one-third of the working-age population, and 400,000 more people than in 2009.

“We can’t say whether these are pricier one-off purchases, or multiple smaller purchases. What we do know is that 45 percent of online shoppers spent up to $100 online in the four weeks prior to being surveyed, and another 40 percent spent up to $500 online,” Mr Hill said.

Kiwis are also managing their money online through Internet banking. Almost three-quarters of recent Internet users have opted for the virtual banking experience. While the use of Internet banking decreases with age, over one-third of those aged 75 years or older had used it in the 12 months before the survey.

Of course, the Internet is also still a place to play: half of all users aged 25–44 years are doing their reading online, and 76 percent of 15–24-year-olds use the Internet to listen to or download music. Social media remains popular, with two-thirds of the country engaging in social networking, a 20 percent increase since 2009. While the young dominate the social networking scene, you’ll find 1 in 6 Internet users aged 75+ there too.

These figures come from the Household Use of Information and Communications Technology Survey, which measures the access to and use of the Internet by individuals and by New Zealand households.

See also:
Household Use of Information and Communication Technology: 2012  –  Information release

Dunedin, New Zealand – Five thousand dollars will be awarded in The NZ Debt Breaker Challenge as part of a nationwide, private initiative to help families become mortgage and debt free, says Barry Kloogh, one of New Zealand’s leading authorities on personal and organisational wealth management and creator of the popular Debt Breaker system. 

The first prize of $5,000 will be presented to the client (existing or new) who reduces his or her mortgage by the greatest percentage between July 1 and November 30, 2013.   “We’re looking forward to presenting $5,000 to the winner, not only to celebrate their individual success using our debt-reduction software, but to show others that living a debt free lifestyle is no longer an impossible dream, but a very attainable goal.”
Contestants will be utilizing a robust new software system called DebtBreaker.

“Our goal for many years has been to help families rid themselves of mortgages and debt at an accelerated rate, so they can reap the rewards of financial independence,” said Barry Kloogh, whose financial consulting head offices are located in Dunedin, with joint ventures in Timaru and Christchurch “It’s taken years of development and programming, but the result is a system that incorporates our proven debt-reduction techniques.”

Barry says; “Our current clients are each on track to save over $100,000 on average. There’s nothing more gratifying than enabling people to pay off a mortgage faster, get out of debt, retire with dignity and be able to pass along their estates to the next generation.  Best of all, just because a family is paying off their mortgage years sooner, doesn’t mean they have to suffer any lifestyle changes or live like a hermit.”

Barry believes that while everybody understands the benefits of paying off their mortgages, and getting out of debt, they’ve never had the proper debt management tools to accomplish that goal until the DebtBreaker system.  “Many people either try outdated debt-reduction practices that simply don’t work, or go to extremes to cut their expenses.  The problem is that something unexpected always seems to come along to derail their budget.”

He says DebtBreaker shows people exactly where they need to make family budget adjustments in real time.  “Our clients are very motivated because they can actually see their debt dropping and savings growing every time they look at the program.”

From Auckland, Hamilton, Tauranga, Rotorua, Wellington, Nelson, Blenheim, Christchurch, Timaru, Dunedin, Invercargill, and many other cities, Barry says response to The DebtBreaker Challenge has exceeded expectations.

“The First Annual NZ Debt Breaker Challenge is a major win/win.  Not only will somebody win $5,000 for their mortgage-reduction efforts, but anybody who uses DebtBreaker will see their mortgage drop substantially.”

Whether you want to know: How to pay off your mortgage, how to reduce debt, or how to save for the future and still have money to enjoy life today. Debt Breaker gives you the tools to do all that.
For complete details about The NZ Debt Breaker Challenge, visit http://DebtBreaker.co.nz or call 0800 332 827.

Kloogh also invites you to stop by the DebtBreaker office at 34 MacLaggan Street, Dunedin, New Zealand, 9054.

Most people think of insurance as a necessary evil, until they need to use it. We don’t often consider income protection insurance as necessary, often because we don't know much about it. Perhaps the insurance industry is to blame for the fact that only 11% of Kiwis have this cover.

If we understand the principle that our most important asset is our power to earn an income and that this power can be taken away instantly in the case of an accident or serious illness that stops us from working, the importance of income protection becomes clearer. 

Most people will purchase car and fire insurance, yet our odds of becoming disabled and needing income protection are 5 times as great as needing fire insurance. If the statistics on take-up are anything to go on, most people are convinced that nothing serious will happen to prevent them from earning.

If a person calculates what he or she will earn over their working life, they will probably come up with a figure somewhere around two million dollars. That may seem like an astounding sum, but calculate it for your own situation. If a person averages $50,000 per year over a 40 year working life time, he or she will earn $2,000,000.

With this figure in mind, purchasing an income protection insurance policy to cover the mortgage, food and expenses for a period of time until one recovers begins to make some sense. Considering that policies can be tailored to one’s budget and are tax deductible, there's a strong case to make some enquiries with a good financial adviser.

Most people should look into an income protection insurance policy. It is usually affordable, as it can be tailored to the family budget. It is a vital form of protection that will avert disaster should a disability occur. Unless a person is extremely wealthy, there is usually no other way to guarantee sustained income should disability strike.

The Budget on 16 May will confirm the Government remains on track to surplus in 2014/15, Finance Minister Bill English said today.

It will also confirm the need for responsible fiscal and economic management beyond then so the Government can start repaying debt and investing more in priority public services.

“The Government is in the midst of a comprehensive programme to make government and the economy more effective, and to create conditions to give businesses and families more confidence to invest in our shared future – despite global economic uncertainty,” Mr English said in a speech to the Wellington Employers’ Chamber of Commerce.

Getting the Government’s own finances in better shape remains an important part of that programme.

“The Government has set a target of returning to fiscal surplus in 2014/15 and the Budget will set out updated forecasts next month.

“But I can confirm that it will show the Government remains on track to surplus in 2014/15, as a result of our careful management of the accounts.

“That is a considerable achievement – and a significant turnaround in the space of just a few years. Just two years ago, we ran an $18.4 billion deficit, half of which was the cost of contributing to the rebuild of Canterbury.

“Returning to surplus in 2014/15 will complete only the first part of our task.

“We will still have some way to go in rebuilding the fiscal buffers that have been run down in recent years. That means fiscal responsibility will be permanent,” Mr English said.

Looking beyond the return to surplus, the Government’s focus would shift toward using forecast surpluses after 2014/15 to achieve its second fiscal objective: bringing down the Government’s net debt to 20 per cent of GDP by 2020.

“This reflects what the Government considers to be prudent levels of debt in the current economic environment.

“In the Half-Year Update in December, net government debt was forecast to be almost 30 per cent of GDP in 2017.

“So you can see there is quite a challenge in front of us to meet the 20 per cent debt target by 2020,” Mr English said.

“It means we will need to maintain firm expenditure control beyond our return to surplus, so we can run big enough surpluses to have choices about paying down debt and investing more in priority public services.

“It is also a critical element of building a more internationally competitive economy.

“By reducing the resources the Government absorbs, we are making room for private investment while minimising upwards pressure on interest rates and the exchange rate. Budget 2013 will reflect those realities.”

The Budget will also continue to focus on macro-economic stability.

“Conventional monetary policy, predictable fiscal policy and a sound financial system are precious advantages in an unstable world. We will hold on to them,” Mr English says.

Related Documents

11 April - speech to Wellington Employers' Chamber of Commerce (pdf 336.24 KB)

Shopping using debit and credit cards in New Zealand decreased during March 2013, after five months of increases, Statistics New Zealand said today.

When adjusted for seasonal effects, the value of electronic card spending in the retail industries decreased 0.5 percent in March.

"Because Good Friday and Easter Sunday were in March this year, instead of April, there were two fewer trading days than during a typical March month," industry and labour statistics manager Blair Cardno said.

"Most of the decrease this month came from core retail industries, with durables and apparel responsible for the bulk of it."

The durables industry includes retailers dealing in furniture; hardware and appliances; and pharmacy, cosmetic, and toiletry items. Apparel industry includes retailers dealing in clothing, soft-goods, and footwear.
Core retail (which excludes the motor vehicle-related industries) spending decreased 0.8 percent in March 2013.

Total retail and core retail spending trends remain positive, although the rate of increase has weakened in recent months.

The total value of electronic card spending decreased 1.2 percent in March 2013.

The trend for total card spending has flattened. It has generally been growing since early 2009.

Trend estimates may be revised as new months are added to the series.

In actual (unadjusted) terms, there were 112 million transactions in March 2013, with an average value of $52. The total amount spent across all transactions was $5.8 billion.

See also:
Electronic Card Transactions: March 2013  –  Information release

Onecard Visa rewards everyday spending with vouchers to spend at Countdown

Countdown has launched the Onecard Visa credit card, an all-in-one loyalty card and credit card, that provides one of the most practical and rewarding loyalty programmes on offer in New Zealand. 

Countdown Managing Director, Dave Chambers, said; “Onecard Visa helps you turbocharge your Onecard points and earn vouchers faster, awarding points for almost all the everyday credit card purchases you make outside Countdown, wherever Visa is accepted. In addition, if you shop at Countdown using your Onecard Visa, you will earn double points.

“When we looked at other credit card rewards schemes in New Zealand, some appeared to us to be quite complicated in terms of the rewards that they offered or how those rewards were able to be redeemed. But with Onecard Visa, the rewards you will earn will be delivered right to your door, in the form of vouchers redeemable at any Countdown store nationwide or online.

“Onecard Visa delivers real and achievable rewards that can be used for customers’ everyday needs such as your weekly groceries or any treat you may find in a Countdown supermarket.”

Onecard Visa comes in a sleek black design and is available from 4 March 2013, at a competitive interest rate of 19.99% on purchases. An establishment fee and annual account fee apply.

Mr Chambers said customers will also be able to manage their finances with the ability to conveniently pay off accounts at Countdown stores.

It will also be one of the first credit cards in New Zealand to use Visa payWave technology, in which transactions are processed with a wave of the card over a terminal. Countdown will introduce Visa payWave across all Countdown stores nationwide.

“With Onecard Visa customers have an all-in-one Onecard loyalty card and credit card. With the addition of payWave it will dramatically increase the speed and convenience going through the supermarket checkout,” Mr Chambers said.

Countdown has partnered with GE Capital to launch the Onecard Visa. GE Capital NZ Acting Managing Director, Kerry Conway said as one of New Zealand’s leading credit card issuers she was looking forward to working with Countdown to provide Kiwi shoppers with an innovative and competitive credit card.

Visa Country Manager, Caroline Ada, said, “The launch of this card is a great example of increasing competition in the payments industry, which will only benefit Kiwi consumers."

Commerce Minister Craig Foss today released new disclosure rules that will give New Zealanders better information to compare KiwiSaver funds.

The KiwiSaver disclosure regulations will require KiwiSaver schemes to regularly report on fund performance, fees, asset allocation and other matters in a simple and standardised form.

“The new disclosure rules will mean KiwiSaver members can directly and easily compare funds and make an informed investment choice. This is a pivotal step in continuing to improve investor confidence in the financial sector,” says Mr Foss.

Under the regulations, KiwiSaver providers will have to publish quarterly and annual disclosure statements online.

“KiwiSaver providers will also need to publish the information in a consistent dataset that can be accessed by others, such as the Sorted website, to make it even easier for members to compare funds.

“The new KiwiSaver disclosure rules are part of the Government’s Business Growth Agenda, which includes a comprehensive range of actions to build high-performing capital markets,” says Mr Foss.

The regulations come into force on 1 July, with the first disclosure statements due to be published in mid-October.

The Commerce Commission is seeking more information from farmers and others who entered into a financial derivative product known as interest rate swaps.

The Commission has received complaints primarily from the rural community alleging they were mis-sold the product by certain banks. In particular complainants allege that the nature and characteristics of the swaps were promoted in a way that was misleading.

The Commission has been assessing this information and has requested and received preliminary information from the banks and more detailed information is being sought.

“This is a very complex investigation and we are at an early stage. We have not yet formed a view as to whether the Fair Trading Act has been breached, however we do have sufficient concerns that we wish to probe further,” said Commerce Commission Chairman, Dr Mark Berry.

Many farmers claim to have suffered significant financial loss as a result of entering into the interest rate swaps.

“We have information from around 60 complainants at this stage, but will need more people to come forward if we are to form a complete picture of the issue,” said Dr Berry. “We are not only interested in people who feel that they have been misled but also those who are satisfied with the way the product was sold to them.”

The Commission is inviting affected farmers and others who may have been involved with swaps to read information on the Commission’s website and complete a questionnaire at www.comcom.govt.nz/interest-rate-swaps

Background

Interest rate swaps are a financial derivative product that allows a client to manage their interest rate exposure on their borrowing. They were principally provided to large corporate and institutional customers, but were later were offered to rural and commercial clients throughout New Zealand by various banks.

The Fair Trading Act

Businesses found guilty of breaching the Fair Trading Act may be fined up to $200,000 for each charge. Where more than one charge is laid, the court may impose a fine greater than $200,000. Only the courts can decide if a representation has breached the Fair Trading Act.