What is Premium Poor? These are the people on low incomes (Winz or Working poor) who pay a premium for all their basis needs, this means they live in ever decreasing circles of opportunity and ever increasing circles of debt.
1/ Power account: The prompt payment discount is a PC way of saying Penalty for those who miss the cut-off date and the Premium Poor will always miss the cut-off date in the winter, spiralling into further debt by adding an extra $30-$40 to the monthly account
2/ Bank Loans: Generally do not qualify with Trading Banks so forced to go to Finance Companies or Loan Sharks where they end up paying Premium on the interest rates. (i.e. borrowed $300.00 pay back $635.00) swimming with sharks will always be trouble and more debt. There is no way out.
3/ Car Purchase: The Premium Poor do not shop at a Mainstream Dealership (i.e. Toyota, Ford or Honda) they shop at second hand car yards where they have a deal for you, this car has only travelled 250,000km and only $6995, they are then Financed into a deal, so immediately they are paying a Premium on interest, therefore they end up paying twice for a car that is worthless once it is paid off.
4/ Housing: The Premium Poor generally live in draughty, damp houses with little or no insulation, poor curtains and no floor coverings. They therefore pay a Premium with their Health by developing serious health related issues that strain the New Zealand health system and in some cases the penalty is death.