More kiwis falling behind on car loan repayments

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People with car loans are finding it harder to make their loan payments on time, according to the latest data from credit reporting agency Centrix.

In March, about 6.5% of all auto loan accounts were behind a new high.

When looking at all loan types, 463,000 people – about 12.7% of New Zealand’s adult population – are behind on at least one loan payment, an increase of 7.4% compared with the same period a year ago.

Of that number, 177,000 are more than 30 days late on loan payments, and 120,000 are more than 60 days late – an 11% increase from a year ago, and a massive 39% jump compared with March 2021.

With more and more people falling behind in their loan repayments, there’s no question that the cost of living crisis continues to hit Kiwis hard.

To make things worse, the unemployment rate is rising – the latest figures show it was 4.3% in the quarter ending in March, an increase from 4% the previous quarter.

Loansmart Managing Director Murray Greig says it’s not surprising that more people are falling behind in loan repayments.

“It’s a tough time in our economy right now. With persistent high inflation and high interest rates, people have less money to spend. “This makes it harder for the average consumer to have enough disposable income to cover everything and meet their debt obligations.”

Murray says there are solutions for people struggling to keep up with loan payments.

“Some people are paying more for their loans than they need to because they signed up for a high-interest rate. And others may have taken out a loan over too short a term, which makes their monthly payments too high for their current income level.

“Loansmart helps people with these sorts of problems every day. Our team is great at finding fast, easy solutions that leave customers with lower payments and more breathing room .”

“If anyone is struggling with their loan repayments, I would encourage them to get in touch with the Loansmart team today to see how we can help.”

Smart solutions, tailored to you

There’s no such thing as a one-size-fits-all solution at Loansmart. We know that everyone’s situation is unique, and our team works fast to find positive outcomes for all our customers.

One way we do this is through our debt consolidation loans, where we take your existing loans, pay them off, and give you a new low-cost loan with lower monthly repayments.

We can lower your repayments by giving you a better interest rate, but also spreading the loan out over a longer period of time to make it more affordable to you.

One example is the Williams family, who consolidated their debt with Loansmart and saved themselves $800 a month in loan payments! How much could you save with a debt consolidation loan? Find out by using our free online debt consolidation loan calculator.

Making it easy to save you money

At Loansmart, we jump through hoops so you don’t have to. We pride ourselves on making the loan process so smooth and easy.

All you have to do is complete our super quick online application form and we’ll get back to you for some more information.

It’s all done online – no pesky paperwork or meetings you have to attend. Let us do the legwork so you can get on with your day.

Usually, we can approve a loan the same day* and have the funds in your account either that day or the following day, depending on the time of day you apply.

Our team of loan experts are always finding creative solutions for our customers so they can enjoy more financial freedom.

Contact us today to find out how we can help you.

*Subject to responsible lending criteria.