40% of New Zealanders take on debt to cover rising living costs, Kiwibank says
A new Kiwibank survey found that 40% of New Zealanders have taken on debt in the past year to cover rising living costs, with grocery bills cited as the biggest pressure point. The bank said the findings point to sustained strain on household budgets despite easing headline inflation. Kiwibank said younger households and renters reported the heaviest reliance on borrowing.
A new survey commissioned by Kiwibank found that 40% of New Zealanders have taken on additional debt over the past year to keep up with rising living costs, with grocery bills identified as the single biggest source of pressure on household budgets.
The bank said the findings suggest financial strain remains widespread even as headline inflation has eased from its recent peaks, pointing to a gap between official price data and how households are actually experiencing costs day to day. Younger households and renters reported the heaviest reliance on credit cards and personal loans to cover essentials.
Kiwibank said the results echo a broader pattern seen across its recent consumer research, with rising numbers of customers seeking budgeting advice and hardship support. The bank urged households under pressure to seek assistance early rather than rely on high-interest borrowing to bridge shortfalls.
Read next
Indonesia's central bank holds rates steady, defying hike expectations
Bank Indonesia left its seven-day reverse repurchase rate unchanged at 5.75%, defying market expectations for a hike. The decision signals the central bank is prioritizing currency stability over further tightening for now.
Moody's upgrades Argentina's credit rating, revises outlook to 'positive'
Five takeaways from New Zealand's 4.1 percent inflation figure
New Zealand inflation expected to hit a two-year high
