Loan Arrears Still A Big Concern For Kiwi Households
In April, consumer arrears sat at 12.43%, meaning around 483,000 New Zealanders were behind on at least one repayment. That's slightly better than March, but not cause for celebration just yet.
More concerning is the number of people who are 90+ days overdue, which has jumped to 83,000, the highest since July last year.
Loansmart Managing Director Murray Greig says, 'this is a clear sign that many households are still stretched thin and finding it tough to bounce back.'
Mortgage Arrears Show Slight Improvement
There is a little bit of good news. Mortgage arrears dropped to 1.49% in April, which means fewer home loan holders are falling behind. That's 1,400 fewer past-due mortgages than the previous month.
But dig a bit deeper and the picture's still mixed. Long-term home loan delinquencies (90+ days overdue) are up 5% year-on-year, and missed payments in the 30–59 day bracket are up 6%, suggesting some Kiwis are on shaky ground even if they haven't fully defaulted yet.
Personal Loans: A Growing Pressure Point
Arrears on personal loans are also creeping higher. In fact, they've now exceeded 10% for the second month in a row. While this is partly due to holiday timing (Easter and ANZAC fell at the end of the month), it's still a reminder that many Kiwis are relying on short-term borrowing to get by.
When it comes to Buy Now Pay Later (BNPL) services, arrears remain stuck at 8.7%, unchanged from last year – but still very high.
What It All Means
Even though short-term arrears are trending down, long-term arrears are clearly on the rise. That's a red flag.
When people can't catch up after missing a payment or two, debt can quickly spiral out of control. It's not just a financial burden – it becomes a massive stressor on everyday life.
Loansmart Managing Director Murray Greig says, 'We're seeing more Kiwis quietly slipping into long-term debt without a clear way out. That's where smart solutions really matter.'
A Debt Consolidation Loan Could Be Your Way Forward
If you're juggling multiple debts and falling behind, a debt consolidation loan can be a smart move.
It rolls all your existing debts – personal loans, credit cards, even BNPL – into one simple loan, with one regular repayment and a potential drop in total interest costs.
Key Benefits:
One affordable repayment
Lower interest rates
Less stress, more control
Help to improve your credit score over time
With interest rates starting from 9.95%, Loansmart provides fast, fair and flexible options to help you get ahead.
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