Kiwis’ wallets are under pressure right now. Despite the Reserve Bank cutting the Official Cash Rate (OCR) to 3.5% in April—the lowest since October 2022—many households continue to struggle to keep up with loan repayments.
The Centrix April 2025 Credit Indicator Report shows that during March, 24,000 residential mortgage accounts were reported as past due—700 more than in February.
This pushes the overall mortgage arrears rate to 1.58%, up from 1.55% the previous month and marking a 7% year-on-year increase.
“Even a small rise in arrears signals real stress,” says Murray Greig, Managing Director of Loansmart. “With everyday costs climbing, exploring smarter repayment strategies before arrears deepen is vital.”
Personal Loan Arrears Climb

Personal loan arrears have edged into double digits for the first time since February 2024. In March, personal loan arrears exceeded 10%, representing a 4% increase year-on-year.
These loans are often used for essential expenses—from car repairs to medical costs—and falling behind can trigger late fees, escalating interest and long-term credit damage.
By contrast, credit card arrears held at 4.7%, and Buy Now Pay Later arrears actually fell to 8.4%, suggesting consumers may be prioritising these revolving-credit products as they juggle repayments.
Overall Market Trends
Across all New Zealanders with active credit, 489,000 people were in arrears in March—12.61% of the total market, up 9,000 from February but 0.7% lower than March 2024.
Of these, 174,000 are over 30 days past due, and 74,000 are over 90 days past due.
While some of this is seasonal—arrears typically spike after summer spending—the figures highlight how widespread repayment pressure has become across mortgages, personal loans, vehicle finance and utilities.
Financial Hardship Still Elevated

Although the growth in hardship cases is slowing, the overall numbers remain high. In March, 14,400 accounts were flagged for financial hardship, a slight drop of 200 from February but an 11.5% increase year-on-year.
Of these hardship flags, 45% were due to mortgage payment difficulties, 30% to credit card debt, and 17% to personal loan repayments.
“Seeing hardship cases plateau is encouraging, but the numbers remain elevated,” notes Murray Greig. “There are things people can do, like restructuring loans, consolidating debt or seeking budget coaching, which can be the difference between recovery and deeper financial strain.”
How Loansmart Delivers Smarter, Faster Solutions

At Loansmart, we specialise in empathetic, no-judgment debt solutions designed to give you breathing room.
Whether you’re falling behind on mortgage payments, juggling multiple personal loans, or simply feeling overwhelmed, our tailored services include:
- Debt Consolidation Loans to combine multiple debts into a single, manageable repayment.
- Personal Loans with transparent terms and quick approval for unexpected expenses.
- Support & Advice, where our qualified advisers help you map out a repayment plan that works for you.
If you’re worried about rising repayments or falling behind on your mortgage or personal loan, don’t wait for arrears to deepen.
Contact Loansmart today for a free loan assessment.