Nearly 100,000 New Zealanders Over 90 Days Behind on Debt as Arrears Improve

Key facts

• 459,000 people were behind on payments in March, down 14,000 from February.
• 95,000 consumers are more than 90 days in arrears.
• Consumer arrears fell to 11.72% of the credit active population, from 12.09% in February.
• Mortgage arrears dropped to 1.39% from 1.42% in February.
• Kawerau, Wairoa and Ōpōtiki districts have the highest consumer arrears at about 17%.
• Buy Now Pay Later arrears improved to 8.8% in March.
• The Reserve Bank left the Official Cash Rate unchanged at 2.25% in April.

Arrears Decline but Severe Stress Persists for 95,000 Borrowers

New data from credit bureau Centrix reveals that 459,000 New Zealanders were behind on their payments in March, a drop of 14,000 from the previous month. However, 95,000 consumers remain more than 90 days in arrears, indicating that a core group of borrowers continues to experience acute financial distress. Centrix chief operating officer Monika Lacey said the overall improvement suggests many households are in a more resilient position than a year ago. Yet the persistent high number of seriously delinquent accounts underscores the uneven nature of the recovery.

Consumer Arrears Hit Lowest Level Since September 2023

Consumer arrears fell to 11.72% of the credit active population in March, down from 12.09% in February and 7.1% lower than a year ago. This marks the lowest level since September 2023.’s latest Credit Indicator report. The improvement was broad-based, with mortgage arrears declining to 1.39% from 1.42% in February, and vehicle loan arrears steady at 5.6%. Credit card arrears rose slightly to 4.2% in March but remained 10% lower than a year ago. Personal loan arrears improved to 10% in March, though they were broadly unchanged year-on-year.

Regional Disparities and Unsecured Lending Pressures

The hardest-hit regions for consumer arrears were Kawerau, Wairoa and Ōpōtiki districts, where about 17% of the credit-active population was behind on payments. These areas continue to face elevated financial strain compared to the national average. Lacey noted that financial pressure is more pronounced for some borrowers in unsecured lending. Buy Now Pay Later arrears improved to 8.8% in March, ending a run of monthly increases seen earlier in the year. The data suggests that while overall conditions are easing, vulnerable groups remain under significant stress.

Reserve Bank Holds Rate Amid Geopolitical Uncertainty

The Reserve Bank left the Official Cash Rate unchanged at 2.25% last month, citing that recent events in the Middle East had materially altered the outlook for inflation and growth. Higher oil and refined fuel prices are expected to add to transport and other costs at a point when the recovery is still finding its feet. Lacey said the credit data was coming through at a more unsettled point in New Zealand’s economic recovery. There is a broad expectation among economists and business leaders that the full impact of these geopolitical developments has yet to filter through.

Outlook: Recovery Fragile as Cost Pressures Loom

While the March data shows improvement, the underlying fragility of the recovery is evident. The 95,000 borrowers more than 90 days behind on payments represent a persistent challenge that may worsen if fuel and transport costs rise further. The Reserve Bank’s decision to hold rates reflects caution, but the path ahead remains uncertain. For now, the improvement in arrears offers a tentative sign of relief, but the combination of high unsecured debt levels and external shocks keeps the outlook precarious.

The bottom line

• Consumer arrears fell to 11.72% in March, the lowest since September 2023, but 95,000 borrowers are over 90 days behind.
• Mortgage arrears declined, but credit card and personal loan arrears remain elevated in unsecured lending.
• Kawerau, Wairoa and Ōpōtiki districts have the highest arrears rates at about 17%.
• The Reserve Bank held the OCR at 2.25% due to geopolitical risks, including higher oil prices.
• Buy Now Pay Later arrears improved to 8.8%, ending a period of monthly increases.
• The full impact of recent global events on New Zealand's economic recovery is yet to be seen.