The cost of living crisis is hitting hard for thousands of Kiwi families with new data revealing a huge spike in the number of people who are behind on their mortgage payments.
The latest Centrix report shows more and more New Zealanders are failing to pay their morgage on time.
In November Centrix has already reported more than 19,200 mortgage accounts are overdue, up 25 percent year on year.
Loans are also continuing to be refinanced with higher interest rates due to the current cost of living crisis.
Centrix has warned this could continue well into 2024.
The report also states credit card, by now and pay later schemes and personal loan demand grew in November.
Peaking particularly at the end of November around Black Friday.
It shows that in spite of this year's increased cost of living pressures that's seen families tightening their budgets, the volume of credit inquiries has not decreased.
This points to the possibility of Kiwi households trying to manage their cashflow by taking advantage of reduced prices ahead of Christmas and in some cases spreading the payments.
It also shows, there will be a segment of the population that are stretching beyond their means, which in turn could spell trouble in 2024.
"Centrix is encouraging anyone who is struggling to meet their repayment needs to get in touch with their credit providers to work out a plan for payments moving forward, and potentially seek help with budgeting."
Company liquidations remain high as businesses struggle in the current economic climate, which has seen small and medium business owners credit defaults rise.
The Centrix report says this all points towards challenges for many heading into summer.
