1 00:00:00,040 --> 00:00:03,199 Speaker 1: Money wise, what have we got data well from June 2 00:00:03,520 --> 00:00:05,680 Speaker 1: when it comes to paying four bills, good news, the 3 00:00:05,760 --> 00:00:08,520 Speaker 1: number of people behind on payments done by seven to 4 00:00:08,600 --> 00:00:11,400 Speaker 1: four hundred and seventy eight thousand. Mortgage inquiries are up 5 00:00:11,600 --> 00:00:14,240 Speaker 1: sixteen point seven percent, driven mainly by that refinancing we 6 00:00:14,280 --> 00:00:15,880 Speaker 1: told you about earlier in the week. We got company 7 00:00:15,880 --> 00:00:18,680 Speaker 1: liquidation still a problem though twenty six percent up year 8 00:00:18,760 --> 00:00:21,959 Speaker 1: on year. Keith McLaughlin is of course, Centrics Managing director 9 00:00:22,000 --> 00:00:23,680 Speaker 1: and is back with us. Keith, morning to. 10 00:00:23,680 --> 00:00:25,119 Speaker 2: You, Good morning. 11 00:00:25,480 --> 00:00:28,760 Speaker 1: So summarize this for me. Are we on the end? 12 00:00:28,880 --> 00:00:30,760 Speaker 1: Are we stuck in a rut? Are we down the drain? 13 00:00:30,880 --> 00:00:32,080 Speaker 1: What does this tell us? 14 00:00:32,680 --> 00:00:35,479 Speaker 2: Look, I think we're still improving. I think the amount 15 00:00:35,560 --> 00:00:38,400 Speaker 2: of the areas are still falling, but not as quickly 16 00:00:38,440 --> 00:00:40,720 Speaker 2: in jutant as who would have liked. I think there's 17 00:00:41,560 --> 00:00:44,600 Speaker 2: a little bit more pressure on households many around the 18 00:00:44,600 --> 00:00:48,560 Speaker 2: areas of things like rates and insurance and power and 19 00:00:48,680 --> 00:00:50,640 Speaker 2: things like that which approach put a bit of on 20 00:00:50,680 --> 00:00:53,440 Speaker 2: the household budget. But look, generally speaking, looking across all 21 00:00:53,440 --> 00:00:56,920 Speaker 2: the numbers, there is definitely a continuing trend of improvement. 22 00:00:57,320 --> 00:00:59,960 Speaker 1: And when we look historically speaking, four hundred and seventy 23 00:01:00,000 --> 00:01:03,000 Speaker 1: eight thousand. Is that a lot of people to owe 24 00:01:03,040 --> 00:01:05,600 Speaker 1: money or have problems with payments? 25 00:01:05,640 --> 00:01:08,080 Speaker 2: Certainly going back five or ten years, Yes, it is. 26 00:01:08,600 --> 00:01:11,520 Speaker 2: We were finding going back a stapy that areas we're 27 00:01:11,560 --> 00:01:14,720 Speaker 2: trending down, certainly on the back of better information a 28 00:01:14,840 --> 00:01:19,639 Speaker 2: quality of credit decisions, so areas worth falling post COVID, 29 00:01:19,640 --> 00:01:22,199 Speaker 2: they climbed up again and we're having trouble just giving 30 00:01:22,200 --> 00:01:24,800 Speaker 2: them back down to that downward trend that we have 31 00:01:24,920 --> 00:01:25,320 Speaker 2: tried to come. 32 00:01:25,360 --> 00:01:27,760 Speaker 1: Now you've isolated the cost plus accounting problem, so the 33 00:01:27,800 --> 00:01:29,720 Speaker 1: interest rates are flowing through the count and the interest 34 00:01:29,760 --> 00:01:31,880 Speaker 1: rates that we're feeling better until the bill arrives from 35 00:01:31,880 --> 00:01:34,160 Speaker 1: the insurance company from the council, and that's the issue, 36 00:01:34,160 --> 00:01:34,440 Speaker 1: isn't it. 37 00:01:35,280 --> 00:01:37,480 Speaker 2: That's correct. I mean there's going to be an ongoing 38 00:01:37,640 --> 00:01:41,600 Speaker 2: improvement in household budget as interest rates continue to fall. 39 00:01:42,080 --> 00:01:45,280 Speaker 2: But you know about seventeen percent of mortgages are going 40 00:01:45,280 --> 00:01:47,920 Speaker 2: on to a repricing over the next twelve months, So 41 00:01:47,960 --> 00:01:50,760 Speaker 2: there will be an improvement in the household budget, provided 42 00:01:50,800 --> 00:01:54,520 Speaker 2: that's not taken up by the non discretionary spending. 43 00:01:54,800 --> 00:01:58,240 Speaker 1: That mortgage inquiry number up sixteen point seven percent, can 44 00:01:58,280 --> 00:01:59,760 Speaker 1: you break it down to the point, are these new 45 00:01:59,760 --> 00:02:02,360 Speaker 1: peace people borrowing new money to buy new houses or 46 00:02:02,400 --> 00:02:04,240 Speaker 1: is it just a lot of refinancing sent the money's 47 00:02:04,240 --> 00:02:05,000 Speaker 1: going around around. 48 00:02:05,760 --> 00:02:07,480 Speaker 2: Yeah, I think there's a combination of both of I 49 00:02:07,560 --> 00:02:09,320 Speaker 2: certainly think the waiting of that is the money going 50 00:02:09,360 --> 00:02:11,960 Speaker 2: around and around with the refinings through a different organization. 51 00:02:12,480 --> 00:02:16,520 Speaker 1: Okay, so two rate cuts to come allegedly, is that 52 00:02:16,600 --> 00:02:18,760 Speaker 1: going to make a material difference to the economy of 53 00:02:18,840 --> 00:02:20,600 Speaker 1: people going to feel better? Where are you at with 54 00:02:20,639 --> 00:02:23,640 Speaker 1: this whole twenty five is going to slowly come? Right? Vibe? 55 00:02:24,480 --> 00:02:26,600 Speaker 2: Well, I think what we relying on is improving the 56 00:02:26,639 --> 00:02:29,240 Speaker 2: consumer confidence so that those who do have money in 57 00:02:29,280 --> 00:02:31,680 Speaker 2: the bank are more haby to go out and spend it, 58 00:02:32,040 --> 00:02:34,400 Speaker 2: and that those that are struggling do have more leeway 59 00:02:34,400 --> 00:02:37,480 Speaker 2: and their household budget. So any contribution to their household 60 00:02:37,480 --> 00:02:39,880 Speaker 2: budget certainly will be a positive trend. 61 00:02:39,960 --> 00:02:41,800 Speaker 1: Always a pleasure, Keith, you have an excellent week nd 62 00:02:41,840 --> 00:02:44,680 Speaker 1: Keith McLaughlin, Centric Managing Director. I read a piece yesterday. 63 00:02:44,680 --> 00:02:47,400 Speaker 1: You never know about whether these people are promoting stuff. 64 00:02:47,520 --> 00:02:50,600 Speaker 1: It's a group called finn Cap Fincappo organized the financial 65 00:02:50,600 --> 00:02:53,320 Speaker 1: mentors in the country they're telling us that there are 66 00:02:53,440 --> 00:02:57,120 Speaker 1: large numbers of what they call really really, really wealthy 67 00:02:57,160 --> 00:03:00,600 Speaker 1: people who are still having trouble with money. Of those 68 00:03:00,840 --> 00:03:02,800 Speaker 1: four hundred and seventy eight thousand people who have got 69 00:03:02,840 --> 00:03:04,680 Speaker 1: a rears on the bills, how many of them are 70 00:03:04,720 --> 00:03:06,640 Speaker 1: really struggling because they don't have enough money, and how 71 00:03:06,680 --> 00:03:08,880 Speaker 1: many are just a bit useless with the dough. For 72 00:03:09,000 --> 00:03:12,080 Speaker 1: more from the Mic Asking Breakfast, listen live to news 73 00:03:12,080 --> 00:03:15,000 Speaker 1: talks it'd be from six am weekdays, or follow the 74 00:03:15,040 --> 00:03:16,519 Speaker 1: podcast on iHeartRadio.