New research launched for New Zealand’s first Debt Awareness Week shows that debt is a normal and positive enabling part of life for many Kiwis – but that stress, shame, and silence remain widespread.

According to the research commissioned by DebtManagers, New Zealand’s leading purchaser of difficult debt, 60% percent of New Zealanders have struggled with debt or are struggling now. But the news isn’t all bad, says DebtManager’s GM Commercial Isaac Manase.

“Debt is an important part of everyday life,” notes Isaac. “It can help people buy a home, get a car, manage unexpected costs, support their family, and invest in education. But our research also shows debt stress is widespread, and too many people are struggling alone.”

DebtManagers specialises in socially responsible debt management, helping rehabilitate people through fairer repayment plans with no fees or excessive interest. The research commissioned by the company, which was conducted by Talbot Mills Research, shows that among the six in ten New Zealanders who have struggled with debt either now or in the past, the burden is unevenly spread. Younger people and renters more likely to be in difficulty, and 74% of Māori respondents have struggled with debt or are struggling now.

But the findings also show that debt plays an important role in many New Zealanders’ lives, with 56% holding a neutral or positive view of debt – including 30% who say it has helped them achieve important goals, like buying a home, covering unexpected costs, and buying a car.

With these facts in hand, the aim of Debt Awareness Week (March 23-29) was simple but powerful: to create a healthier, more open, and supportive conversation about debt in New Zealand.

“Debt Awareness Week is about recognising what debt can enable,” says Isaac, “while also being honest about what happens when it becomes difficult and how we make it easier for people to seek support without judgement.”

The week kicked off with a breakfast function, where the new research was unveiled to a gathering of business, community, and political leaders. The findings were then unpacked via a panel discussion with three experts from the financial and credit management industry: FinCap Senior Policy Advisor Jake Lilley, Centrix Chief Operating Officer Monika Lacey, and Isaac himself.

The panel was united on several opinions. Most people want to do the right thing and pay their bills on time – but life circumstances, such as job loss, illness, relationship breakdown, or unexpected events can quickly turn manageable debt into something much harder. Many people try to sort things out on their own first, often juggling multiple debts in a way that’s impossible to sustain. Simpler, clearer pathways, the panel agreed, can make it easier for customers to engage with financial management services earlier – and the success stories when people get back on track deserve celebration.

But above all, the panel was firm that a new lens is long overdue on the issue of debt. Too much of the conversation, they agreed, has historically been shaped by blame and stigma, even though debt stress is common and widespread. It’s an approach that has left a mark on the national psyche; 86% of those surveyed in the research believed that people feel embarrassed to admit they are struggling, and 69% believed that most people would judge someone who cannot manage their debt. Among those who have struggled with debt, only 25% said they spoke to a financial adviser or community support service, such as a financial mentor.

More than a third said they told no one.

“Many people still feel embarrassed to admit they are struggling,” says Isaac. “That tells us shame and stigma are making a hard situation even harder.

“We wanted Debt Awareness Week to help change that. Seeking support should not feel shameful, and nobody should feel they have to deal with debt problems alone.”

Now that Debt Awareness Week has come to a close, Isaac and the team at DebtManagers are hopeful that a new dialogue around debt has been successfully sparked. “Let’s recognise the good things debt can enable in our lives, but seek help when it is needed,” says Isaac. “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 judgement.”

If your business finds itself waiting on customers to pay what they owe for your goods or services, DebtManagers has a number of tips for dealing with consumer arrears:

Engage, don’t just chase.
Communicate early with clarity and empathy.
Explain options before consequences and make the next steps realistic and achievable.
Reduce friction and mixed messages.
Work smoothly with support providers in complex cases.

Remember, says Isaac, that small wins matter. “Re-engagement and a clear plan are often the first step to sustainable resolution.”

If your customers need help with their debt, DebtManagers recommends the following resources:

• A financial mentor who offers free advice and assistance

• MoneyTalks for support and connections with financial mentors

• DebtFix for a debt solution

• The Salvation Army for help with budgeting, life skills, and other support

• Call/text 1737 (Need to Talk?) for debt affecting mental health

• CAP Debt Help (Christians Against Poverty)

• Citizens Advice Bureau

• Employee Assistance Programmes available at many workplaces

For the full research commissioned by DebtManagers, visit: https://debtmanagers.co.nz/blog.

Story by Beth Caunter.