More than 2 million Kiwis credit cardholders are limiting their card spending, according to research by financial comparison site Finder. 

The survey found that more than 20 per cent of respondents have set a spending limit on their card while 10 per cent keep their credit card out of sight to avoid temptation. Other cardholders are using other ways, such as unlinking their credit card from their phone, cutting up their card or putting their card in the freezer in a block of ice. 

“Hiding your credit card or even freezing it is a bit like chucking out all the treats in your house when you start a diet,” said Angus Kidman, Finder’s editor-at-large in New Zealand. “It’s a short-term fix, but you’re still going to be tempted to buy more when you go to the shops.”

According to Finder, there was $2.9 billion in outstanding interest-bearing debt across the country as of last October, declining 12 per cent year on year.

Finder’s research also found that 74 per cent of millennials are the most likely to be cracking down on their credit card spending, compared to 43 per cent of Gen X.

Kidman advocates consumers take a long-term approach to manage their cards by thinking about how their card spending fits with their financial goals.

Kidman suggested Kiwis consumers apply the 50/30/20 rule with their money, where half of their income is for crucial bills while 30 per cent goes towards leisure, and the remainder goes straight into their savings account.

“Switching to a low-interest credit card is a clever move for those months where you might otherwise struggle to pay everything off,” Kidman added. “Remember, credit cards can save money by giving points towards flights and groceries – so long as you pay off the balance at the end of every month.”