Don't Wait to Fall Behind: How to Deal with Credit Arrears in Challenging Times
With major economic events pushing the cost of living higher and recent weather disasters causing disruption to many lives, it is no surprise that financial stress has become an increasingly common issue. Unfortunately, missing credit payments can have devastating effects on a person’s overall credit rating for years in the future – something everyone should bear in mind during these trying times.
The latest Credit Bureau Centrix data paints a concerning picture for New Zealanders, with 11.9% of the population falling behind on repayments in January – an increase from December and the highest number since April 2020. With 430,000 individuals impacted by arrears and 18,400 mortgages overdue at present, it is essential to explore effective solutions that will support those affected financially during these difficult times.
Loansmart Managing Director Murray Greig says “If you’re feeling the pressure of mounting debt, it’s important not to wait until you’ve already fallen behind before seeking help. Thankfully there are options available that can help make your payments more manageable.
Knowing your options – such as budgeting advice or loan restructuring can bring welcome relief when faced with difficult financial circumstances. Working in tandem with an experienced lender could be game-changing; they may be able to adjust interest rates, fees and repayment terms depending on what is owed and current income levels”.
Managing debt successfully often hinges on whether you have a comprehensive understanding of the available options. According to Murray Greig, taking a holistic look at your financial health is critical for making informed decisions.
Debt management is no easy feat, but having a plan in place can make all the difference in keeping up with payments during challenging times like this. If you’re under pressure, don’t wait until you fall behind before seeking help – there are plenty of resources out there that can assist with finding ways to manage debt more effectively. Loansmart provides free Loan Assessments to help you see how much you could save on repayments.