Flash cash spenders could end up losers

  • Auckland home owners are feeling wealthy as they see their homes skyrocket in price. When they do, it often leads to thoughts of borrowing and spending.

The changing face of debt in New Zealand means it has become common to borrow against the home for everything from holidays to renovations. A mortgage top-up is an easy fix to make credit card bills go away or buy a flash new car.

Top-ups give homeowners all the trappings of wealth and the ability to live as they believe they deserve, but it can be a disastrous mistake. Household balance sheets have become increasingly leveraged over the past couple of decades.



In these times of inflated house values, it’s tempting to borrow against your home and splash out on a new car or an overseas trip, but it may cost you in the long term. Photo / Getty Images