As Kiwis continue to face tough economic times, the latest Centrix Credit Indicator Report for July 2025 reveals something many are already feeling: loan arrears and financial hardship aren’t going away anytime soon. In fact, around 478,000 people are behind on their repayments — that’s 12.36% of all New Zealanders with active credit accounts.
The report shows consumer arrears, financial hardship, and late payments are sitting stubbornly high across the board. Personal loan arrears are at 9.3%, and hardship cases are up 7.1% from last year — nearly 14,450 accounts are flagged in financial distress. That’s a lot of pressure on Kiwi households.
What’s Going On?
- The number of people with consumer debt arrears have plateaued: The drop in late payments seen earlier this year has now stalled, but many people are still struggling to meet repayments.
- Hardship is growing: Most hardship cases are linked to mortgages (45%), credit card debt (29%) and personal loans (18%).
- Middle-aged Kiwis are most affected: Those aged 35–49 are reporting the highest hardship levels.
For those with imperfect credit, that means fewer chances of getting approved — unless you know where to look.
Where Loansmart Comes In
We’re not a one-size-fits-all lender. Loansmart is built for moments like this. Our whole purpose is to make smart lending fast, fair, and stress-free — especially if your situation isn’t perfect on paper.
“The Centrix report confirms what we’re seeing every day — more Kiwis are feeling the pinch,” says Loansmart Managing Director, Murray Greig.
“With over 478,000 people behind on payments and hardship cases rising, it’s clear that many are doing it tough. At Loansmart, we’re here to offer real solutions, not judgement. We’re here to help people move forward, not judge the past.”
If you’ve got multiple loans or overdue payments, our debt consolidation loans can bundle everything into one easy-to-manage loan.
We also offer Second Chance Loans for people with bad credit. Even if the bank said no, there’s a good chance we can still help.
“You don’t have to be perfect to get a fair deal,” Murray adds. “We take the time to look at your full situation and find a smarter solution.”
What Makes Us Different?
- We move fast – Apply online in 2 minutes. Get approved in 1–2 hours*.
- We say yes more often – More options = higher approval chances.
- We’re smart and fair – Get the best deal from a network of low-cost lenders.
- We care – No pressure. Just clear advice, tailored to your needs.
We’re also proud to be the first loan broker to join the Financial Services Federation, which means we’re committed to responsible lending and doing what’s best for you.
If you’re feeling stretched thin, you’re not alone. Now more than ever, it’s important to have the right financial partner in your corner.
Loansmart helps everyday Kiwis get fast, fair, and smarter loans — without the hassle.
Apply Now!
*Subject to responsible lending checks and criteria.
