• Surging household debt levels will create a lengthy debt hangover, potentially hitting growth for years to come, economists warn.

After several years of deleveraging in the aftermath of the global financial crisis as households reined in spending, New Zealand household debt levels, relative to incomes, have been climbing since late-2011.

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Debt

Sergey Nivens
Rising house prices have forced Kiwis to take on more debt to get onto the property ladder, as well as encouraged existing home owners to borrow as they feel wealthier, but economists warn a crunch is coming.