\u201cAt the consumer level, credit conditions are showing some clear signs of stabilisation,\u201d Centrix chief operating officer Monika Lacey said.<\/p>\n
\u201cFewer 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.\u201d<\/p>\n
Residential mortgage arrears declined to 1.29%, down from 1.39% the previous month.<\/p>\n
There are now 21,1000 accounts past due, 13% lower year on year.<\/p>\n
Mortgage arrears hit a post-Covid high of 1.58% in March last year.<\/p>\n
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.<\/p>\n
Mortgage-related hardship remains the largest category (36%) and is easing, followed by credit cards (35%).<\/p>\n
However, personal loan hardship is rising sharply, up 34% year on year and now accounting for 23% of cases.<\/p>\n
Company liquidations rose 17% year on year in April and are tracking towards their highest levels since 2010, according to Centrix.<\/p>\n
The construction industry continues to be the largest driver, with 780 companies liquidated in the past 12 months, up 7% year on year. <\/p>\n
Hospitality is the second-largest contributor and the fastest rising, with 414 liquidations recorded, up 49% year on year.<\/p>\n
\u201cThis sharp increase highlights the continued strain on the sector, particularly amid cost pressures and softer discretionary spending,\u201d Lacey said.<\/p>\n
\u201cSmall business owners are exposed, particularly those relying on home equity, reinforcing the close link between household and business financial health.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cAt the consumer level, credit conditions are showing some clear signs of stabilisation,\u201d Centrix chief operating officer Monika…\n","protected":false},"author":2,"featured_media":457729,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[54170,26691,806,33859,138,82880,3105,38402,143305,219,1644,71,29012,12469,5983,2513,111,139,69,133688,7676,9361,1560,418,544],"class_list":["post-457728","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-april","tag-arrears","tag-as","tag-benefiting","tag-business","tag-centrix","tag-data","tag-drop","tag-eased","tag-economy","tag-financial","tag-from","tag-households","tag-interest","tag-levels","tag-lower","tag-new-zealand","tag-newzealand","tag-nz","tag-providing","tag-rates","tag-relief","tag-report","tag-shows","tag-some"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/457728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=457728"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/457728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/457729"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=457728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=457728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=457728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}