Lending Arrears Overview – July

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Once a month, the Centrix Credit Bureau of New Zealand puts out its Credit Indicator report.

This report is a great way to gauge what’s happening in the New Zealand economy by keeping an eye on the nation’s credit health. So, are things looking brighter for Kiwis? Well, for consumers, the news is good.

Well, for consumers, there’s some good news. In June and July 2023, there was a decrease in overall arrears figures.

Although the year-on-year figures are still up, there have been some slight improvements across most major categories, including personal loans, BNPL products, credit cards, and vehicle loans. Take a look at the trend graph to see the numbers for yourself.

Unfortunately, things aren’t as positive for Kiwi businesses. Credit defaults and company liquidations have increased by 36% year-on-year, which is impacting employees and creating challenging financial environments for households across New Zealand.