‘It’s a gloomy environment’. Household confidence remains low even as data shows fewer are struggling to pay bills

Wednesday, 1 July 2026

More Kiwi households have got on top of their finances, data from credit reporting company Centrix shows.

However, polling by The Post suggests that could be because many have cut their spending to the bone, and as a result are feeling poorer.

At the end of May, 432,000 people were behind on at least one credit contract, such as a power bill, car loan, mobile account, or loan, according to Centrix, which compiles credit reports on individuals using data passed to them by the links of banks, insurers, finance companies, and utility and telecoms providers.

That was 11,000 fewer than at the end of April and represented a four-year low, Centrix said.

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“Overall, June’s data suggests credit conditions are improving for many households and businesses, but confidence remains measured and pockets of financial strain are still evident,” said Monika Lacey, chief operating officer at Centrix.

Lower mortgage rates had eased pressure on households with home loans, but financial pressure was particularly visible among renters, and borrowers with personal loans, credit cards, and Buy Now Pay Later loans, Lacey said.

However, polling for The Post by Freshwater Strategy indicates rather than improving, the national mood on household finances has become negative over the past year.

The polling showed economic gloom had settled over many households with more people expecting their own financial situation to worsen in the coming 12 months (34%), than expected it to improve (24%).

Twelve months ago 30% had expected their financial position to worse in the next 12 months, and 36% had expected it to improve.

Keith McLaughlin, managing director of Centrix, said household confidence remained low even after the hard data showed household finances were improving with fewer people behind on their bills.

“It comes down to how people feel, not what the numbers show,” he said. “They are not confident things are coming right.”

Confidence sometimes returned slowly, and at the present time that was manifested in people unwillingness to spend, or to borrow money.

“Credit demand is still weak because people don’t have the confidence,” he said.

“It’s a gloomy environment.”

Polling by The Post revealed that relieving the cost of living is the key priority many voters want politicians to focus on going into November’s general election, and the reason was the worrying direction their own finances were taking.

Four in 10 voters said relieving the cost of living was the single most important issue for politicians to tackle.

Earlier this month, Labour’s finance and energy spokesperson Barbara Edmonds accused the Government of making the cost of living crisis worse, after Stats NZ released data showing sharp hikes in the cost of food and fuel.

'Price increases are hitting Kiwi households hard. Mince is up 15% over the last year, white bread is up 40%, and chocolate is up 16%,“ she said.

'Families are doing it tough, and National has no answers,“ Edmonds claimed, however the factors driving fuel and food prices up are international, with fuel prices driven up by the US war on Iran, and prices for cocoa and beef set by supply and demand globally.

But higher prices do appear to be constraining more households, making them feel worse off.

The Post June poll this year showed just 23% of people felt confident, and able to “spend freely”, down from 30% a year before.

And, the poll showed, 45% had been having to make cuts to keep their heads above water, up from 37% a year earlier.