Struggles with debt for most Kiwis

The latest Centrix Indicator report shows financial conditions are continuing to have an impact on credit trends for both consumers and businesses.

While credit demand is now back above pre-pandemic levels, boosted by vehicle loans, retail energy, credit cards and personal loans,  arrears have also climbed, tracking close to 2018 levels – although these levels are coming off historic lows in the wake of the pandemic.

The number of people behind on their repayments has risen month-on-month to 427,000. Interestingly, says Centrix managing director Keith McLaughlin, many of the discretionary spending arrears have gone down month-on-month, while essentials like retail energy arrears have climbed in recent months.

“Mortgage and vehicle loan arrears are also up year-on-year, which is a concerning trend to observe as these essential repayments are often the last households let slip when times get tough.”