A new survey has revealed that four in five New Zealanders report feeling ashamed to admit they are struggling with debt, stressing the value of taking ownership of our financial decisions and seeking help when needed.
An expert says it has to be discussed openly.
The research, released during Debt Awareness Week, found that although carrying debt has become commonplace, the emotional stigma of admitting financial difficulty remains high for most respondents.
The study found that 60% of New Zealanders have faced debt challenges, with 28% currently experiencing difficulties and 32% having dealt with them in the past.
From a demographic perspective, younger individuals, renters, and Māori (74%) were more likely to be experiencing financial struggles.
Over two-thirds of respondents (69%) felt that most people would judge someone unable to manage their debt, and 67% believed there is “a lot of shame” in New Zealand associated with debt issues.
Despite these challenges, 37% of those facing financial difficulties chose not to discuss it, reflecting that many Kiwis prefer to manage their obligations independently rather than rely on public assistance.
Among those who did seek advice, most turned to friends or family, while only 25% consulted a financial adviser or community support service.
DebtManagers’ general manager of commercial Issac Manase said that although 85% of New Zealanders acknowledge that debt stress is common, many still feel embarrassed to admit they are struggling.
Manase emphasises that debt is a significant part of many New Zealanders’ lives, with 56% holding a neutral or positive view of it.
Nearly a third of respondents (30%) said debt had helped them reach important milestones, most commonly to purchase a home, cover unexpected expenses, or buy a car.
“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 judgement.”