New data from Centrix shows a 14% year-on-year increase in financial hardship, with nearly 50,000 individuals struggling to pay bills—24,000 of whom are facing mortgage stress.
Mortgage, credit card, and personal loan issues make up the bulk of hardship cases, particularly affecting 35- to 49-year-olds.
Although household arrears have plateaued and the percentage of credit-active Kiwis in arrears has slightly decreased, the number of people behind on bills rose to 485,000 in May.
Meanwhile, company liquidations are up 27% compared to last year, with the construction, property, and hospitality sectors hit hardest. Business credit demand is also increasing, particularly in retail and hospitality, as financial pressure mounts across industries.
Image credit: Kelly Sikkema
