More than two-thirds of respondents (69%) also believed most people would judge someone who cannot manage it, 67% believing there was “a lot of shame” in New Zealand around debt problems.
DebtManagers general manager of commercial Issac Manase said it was important Kiwis acknowledged the good things debt can enable in our lives, but seek help when it is needed.
DebtManagers general manager of commercial Issac Manase said Debt Awareness Week was about creating a healthier, more open and supportive conversation about debt in New Zealand.
“Debt is an important part of everyday life. It can help people buy a home, get a car, manage unexpected costs, support their family, and invest in education,” Manase said.
“But our research also shows debt stress is widespread and too many people are struggling alone.
“Debt Awareness Week is about recognising what debt can enable, while also being honest about what happens when it becomes difficult and how we make it easier for people to seek support without judgment.”
Despite concerns about debt, 37% of Kiwis who have struggled chose not to speak with anyone about it.
Of the majority who had spoken to someone about their concerns, most often they spoke to friends or family, only 25% said they had spoken to a financial adviser or community support service.
Manase said even though 85% of New Zealanders say debt stress is something most people experience, many people still feel embarrassed to admit they are struggling.
“Debt can be a powerful enabling force in people’s lives, but life also happens.
“People lose jobs, relationships break down, health changes, and unexpected costs come up. When that happens, people can fall behind quickly and the effects can compound.
“What stands out is just how common debt stress is. It is not a fringe issue. For many, it is a lived experience.”
Manase is keen to reassure that debt plays an important role in many New Zealanders’ lives; 56% hold a neutral or positive view of debt.
Almost a third of respondents (30%) said debt had helped them achieve important goals, most often to buy a home, cover unexpected costs or to buy a car.
Manase said his message was simple.
“Let’s recognise the good things debt can enable in our lives but seek help when it is needed. There are free financial mentors around the country, and companies also have ways they can support people who are under pressure.
“Debt is common in our lives. We need to be able to talk about it more openly, both the opportunities it can create and the pressure it can cause, so people can get help earlier and without judgment.”
Talbot Mills surveyed 1092 Kiwis between February 27 and March 9 for the research, with a maximum sampling error at the 95% confidence level of ±3.1%.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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