More than 491,000 New Zealanders are struggling to keep up with their credit repayments.
According to the latest Centrix Credit Indicator report, this represents an increase of 21,000 people compared to the previous month. With mortgage arrears hitting an eight-year high and other forms of consumer credit debt on the rise, it’s clear that financial pressure is mounting for many Kiwis.
The numbers paint a sobering picture of the current economic situation:
- 23,700 mortgages are now overdue—up 6% year-on-year, and at an 8-year high.
- Personal loan arrears climbed to 9.7% in January.
- Buy Now Pay Later (BNPL) arrears rose to 8.6%, and telco arrears hit 10.7%.
- Financial hardship reports surged by 20% year-on-year, affecting 14,700 accounts.
With rising costs of living and ongoing economic uncertainty, this data is a wake-up call for Kiwis to take control of their financial situations.
Managing Director of Loansmart, Murray Greig, says if you’re struggling with debt, now is the time to act to regain control.
“Avoiding addressing debt concerns can lead to a spiral of late payments, extra charges, and a worsening credit score.
“It’s vital to take charge of your finances early. The sooner you act, the easier it is to avoid falling into a debt cycle that becomes harder to escape from.”
How Loansmart Can Help
If you’re one of the many Kiwis feeling overwhelmed by debt, Loansmart offers a range of smarter solutions to help you get back on track.
Free Loan Assessment
Swimming in debt but not sure how to get out? Get in touch with our friendly team today to discuss your situation and they can advise you on the best next steps.
We offer a free loan assessment where we’ll take a look at your financial circumstances and help you choose a great solution.
With our network of low-cost lenders, we provide affordable loan options that set you up for financial success.
Debt Consolidation Loans
Our debt consolidation loans are designed specifically for those juggling multiple repayments, high-interest rates, and mounting financial stress. They can stabilise your financial situation, help you meet commitments, and avoid additional late fees or increased arrears.
Debt consolidation combines your outstanding debts—like credit cards, car loans, or BNPL balances—into a single, easy-to-manage loan. This simplifies your budget, reduces fees, and can even lower your overall interest rate. At Loansmart, we’ll tailor a repayment plan to suit your financial situation
Benefits of Debt Consolidation with Loansmart
- Simplified Repayments: One loan, one due date, no juggling multiple accounts.
- Lower Interest Rates: Save money by consolidating high-interest debts.
- Reduced Fees: Eliminate monthly admin fees from multiple loans and credit accounts.
- Stress-Free Applications: Our 100% online process makes applying simple and quick.
Take control of your finances today. Loansmart’s friendly experts can assess your situation and help you find a solution—often with same-day approval*.
*Subject to responsible lending checks and criteria.
