“At the consumer level, credit conditions are showing some clear signs of stabilisation,” Centrix chief operating officer Monika Lacey said.
“Fewer borrowers are falling behind on repayments, and arrears rates are continuing to decline. This reflects the combined effect of lower interest rates in recent periods and a slow but steady economic recovery, which has helped ease debt servicing pressures for many households.”
Residential mortgage arrears declined to 1.29%, down from 1.39% the previous month.
There are now 21,1000 accounts past due, 13% lower year on year.
Mortgage arrears hit a post-Covid high of 1.58% in March last year.
Financial hardship cases have declined 9.3% year on year, with 13,450 accounts reported in hardship in April, an increase of 50 since March.
Mortgage-related hardship remains the largest category (36%) and is easing, followed by credit cards (35%).
However, personal loan hardship is rising sharply, up 34% year on year and now accounting for 23% of cases.
Company liquidations rose 17% year on year in April and are tracking towards their highest levels since 2010, according to Centrix.
The construction industry continues to be the largest driver, with 780 companies liquidated in the past 12 months, up 7% year on year.
Hospitality is the second-largest contributor and the fastest rising, with 414 liquidations recorded, up 49% year on year.
“This sharp increase highlights the continued strain on the sector, particularly amid cost pressures and softer discretionary spending,” Lacey said.
“Small business owners are exposed, particularly those relying on home equity, reinforcing the close link between household and business financial health.”