PHOTO: Debt Disaster: New Data Exposes the Hidden Strain on Kiwi Households. FILE
New Zealand’s cost-of-living crisis is taking a brutal toll on households. According to new data from credit bureau Centrix, a staggering 24,000 Kiwis are now struggling to pay their mortgages, while a record-breaking 485,000 people are behind on everyday bills — an increase of 14% in just one year.
“Hardship is rising, businesses are folding, and debt is stacking up. We’re not out of the woods yet,” warns Centrix managing director Keith McLaughlin.
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🏠Mortgage Misery and Mounting Arrears
The Centrix June Credit Indicator paints a sobering picture:
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24,000 people in mortgage distress
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Nearly 50,000 officially in financial hardship
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46% of hardship cases tied directly to mortgage payments
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Credit card debt and personal loan arrears making up the rest
Hardest hit? Kiwis aged 35–49, caught between rising costs and mortgage repayments that keep climbing.
📊Bill Shock: 485,000 Behind and Counting
The number of people falling behind on power, phone, and everyday expenses has now hit:
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485,000 people in arrears
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180,000 are more than 30 days overdue
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81,000 are over 90 days behind
That equates to 12.51% of the credit-active population — up from 12.43% just one month ago.
📍Worst-Hit Regions Revealed
The regions with the highest number of people in arrears include:
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Wairoa District (Hawke’s Bay) – 18.3%
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Kawerau District (Bay of Plenty) – 18.07%
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Gisborne, Ruapehu, and Waitomo not far behind
The lowest arrears rates were seen in:
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Tasman – 8.22%
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Nelson City, Central Otago, Mackenzie, and Wellington City
💥Business Blowout: Company Liquidations Surge by 27%
It’s not just households feeling the pain — businesses are collapsing at alarming rates. The data reveals:
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A 27% jump in company liquidations from 2024
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Over 750 building firms have folded in the last 12 months
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The hardest-hit sectors include:
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Residential construction
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Property development
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Hospitality (restaurants and cafés)
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Road freight transport
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“Construction is absolutely reeling. We’ve never seen failure rates this high,” said McLaughlin.
📈Credit Demand Up… But at What Cost?
While businesses are collapsing, the demand for credit is booming:
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Business credit applications up 9% year-on-year
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Retail sector up 25%
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Hospitality credit demand up 23%
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Financial and insurance services up 18%
But behind that growth may lie deeper instability. More credit could mean more defaults down the road — especially as IRD ramps up enforcement and operating costs remain high.
🛑BNPL, Power, and Phone Bills Also Rising
The smaller bills aren’t being paid either:
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Buy-now-pay-later arrears up to 9%
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Power bills in arrears up 5%
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Phone bills steady but still high
It all adds up to one undeniable truth: Kiwis are under pressure from every angle.
🧾Final Word: Is This the Start of a Full-Scale Debt Crisis?
While there are signs that arrears may be stabilising in parts of the economy, the surge in mortgage stress, business collapses, and rising hardship can’t be ignored.
The government and lenders may talk about “green shoots,” but for hundreds of thousands of Kiwis, financial ruin feels closer than recovery.
If this trend continues, experts warn, New Zealand may be facing a slow-motion economic shockwave that no one is prepared for.
SOURCE: NEWSTALK ZB