Credit bureau Equifax says credit card hardship has jumped 33% as household budgets tighten and people use revolving credit to absorb daily expenses

Credit bureau Equifax says reliance on revolving credit is “becoming more pronounced” as an increasing number of households struggle with credit card debt.

Data from the credit bureau’s latest New Zealand Market Pulse report for October shows credit card hardship increased 3.0% month-on-month and 33.3% year-on-year.

This was the strongest annual deterioration across major lending products monitored by Equifax being personal loans, credit cards and home loans.

Equifax said the increase in credit card hardship suggests household financial pressure on revolving credit is “becoming more pronounced” and reliance on short-term borrowing remains elevated.

Equifax NZ’s Head of Solutions Nick Foster said the increase in credit card hardship was an emerging area of concern.

“The increase of credit card hardship – 33.3% year-on-year – suggests that while most mortgage holders are continuing to manage their repayments, a growing number of households are beginning to rely on revolving credit to absorb everyday expenses,” he said.

Foster said mortgage performance remains resilient despite continued cost-of-living and interest rate pressures.

“Home loan enquiry volumes are up 12.2% year to date, while mortgage arrears declined 0.49% in September. Together, these indicate fewer borrowers are getting into repayment difficulty,” he said.

The Equifax report said home loan activity continues to track above both 2024 and 2025, reinforcing the sustained improvement in mortgage enquiry volumes seen throughout much of 2026. 

“Recent weekly movements also suggest momentum has firmed after the more moderate pace seen through the middle of the year. Enquiry volumes have edged higher into October, indicating that underlying mortgage shopping and refinancing demand remains resilient despite a more cautious housing market backdrop,” the report said.

“Overall, housing credit demand continues to show relative strength. Borrowers remain selective amid affordability and cost-of-living pressures, but the widening year-to-date uplift suggests demand is holding up better than last year and enters the final quarter with a firmer growth profile.”