The latest June 2025 Centrix Credit Indicator shows that while arrears may have stabilised slightly across the country, thousands of New Zealanders remain under growing financial pressure. And behind the headline figures lies a sobering reality — financial hardship is quietly but steadily rising.
In May, 485,000 consumers were behind on at least one payment, up slightly from April but down 1% year-on-year. While that trend might sound encouraging on the surface, a closer look reveals some troubling patterns — particularly for long-term debt.
Of those behind on payments, 81,000 people are more than 90 days overdue — a critical tipping point that often leads to debt spiralling out of control if not addressed. And this number has barely shifted, suggesting many households remain stuck in persistent debt.
For Loansmart, these figures confirm what we’re hearing from Kiwis every day — many are stretched to their limits and struggling to see a way forward.
“We’re hearing from people who have previously kept up with their bill and loan payments, but are now drowning in multiple debts,”
says Murray Greig, Managing Director of Loansmart.
“They’re not irresponsible — they’re overwhelmed. Life has just become harder to manage financially.”
Mortgage Stress, Credit Struggles & Cost of Living Pressures
While some improvement has been seen in mortgage arrears, which dipped to 1.44% (down from 1.49% the month before), this hasn’t been enough to signal relief for everyone.
Personal loan arrears, for example, remain high at 9.4%, only slightly down from 10.1% earlier this year — and still above last year’s level of 9.2%. Buy Now, Pay Later (BNPL) arrears have crept back up to 9.0%, a red flag that short-term borrowing remains a go-to solution for those trying to bridge the gap between paydays.
Even basic living costs are taking their toll. Telco arrears (for things like mobile and internet services) are sitting at a staggering 11.2%, and retail energy arrears remain at 4.3% — both unchanged from earlier this year and higher than 2024 levels.
This tells us that many Kiwis are still falling behind not just on loans, but on everyday essentials — like power, broadband, and groceries. And that kind of stress builds up quickly.
Financial Hardship Is Rising Fast
According to the Centrix data, nearly 15,000 accounts have been flagged in financial hardship, up by 300 in just one month and rising steadily since late 2022.
That’s 14.4% higher than last year, and the biggest chunk of these hardship cases — 46% — are due to difficulties with mortgage repayments. Another 28% are linked to credit card debt, and 18% to personal loans, painting a clear picture of widespread financial strain.
The most affected age group? Kiwis aged 35–49. Many in this group are juggling mortgages, raising families, and coping with increasing costs across the board. These are the years that are supposed to bring financial stability — but for many, it’s turned into a balancing act with no safety net.
“We’re seeing clients who are doing everything they can just to get by,”
says Murray Greig.
“They’re working hard, but every time they make progress, something else sets them back. That’s when a smart, affordable debt solution becomes life-changing.”
How Loansmart Can Help You Take Control
When your debt feels like it’s taking over, it’s hard to know where to start. That’s where a debt consolidation loan can really help.
At Loansmart, we help you bring together all your existing debts — credit cards, personal loans, BNPL balances, even utility bills — into one easy-to-manage loan. This simplifies your repayments, reduces stress, and could even save you money with a lower interest rate.
Why choose a Loansmart debt consolidation loan?
- Lower monthly payments
- Fewer interest charges and service fees
- One predictable repayment instead of many
- Same-day payout options for urgent needs*
- Flexible terms tailored to your income cycle
- Start improving your credit score over time
And because we work with a wide range of low-cost lenders, we’ll make sure you get a deal that fits your unique situation — not a one-size-fits-all offer.
We also look beyond the numbers. Our experienced team takes time to understand your full financial picture and guides you through your options. We’re here to help you succeed — not judge or pressure you.
Apply Now
*Subject to responsible lending checks and criteria.
