Back-to-school and work costs are forcing parents to resort to high-interest credit fixes to juggle household budgets already squeezed by holiday spending, a new survey shows. 

A whopping 70% of respondents faced with these expenses reported negative impacts, the BNZ Voice survey found. 

More than a third (37%) said they were turning to high-interest lending such as buy now, pay later services and credit cards to cover costs. 

The biggest start-of-year expenses were stationery (53%), transport (42%), school and work uniforms (42%) and technology-related costs (40%). 

“The financial pressure at the start of the year is very real for some households, especially after the holiday period when budgets are already stretched,” BNZ executive for personal and business banking Anna Flower said. 

Flower said these pressures led to difficult sacrifices for some. 

“Fourteen per cent of affected households reported selling things to help meet these costs,” she said. 

North Harbour Budgeting Services (NHBS) general manager Claudette Wilson said BNZ’s findings mirrored what it was seeing on the front lines. 

“2025 has been challenging for parents, with many turning to buy now, pay later schemes and other high-interest credit options that can create longer-term financial strain. 

“We’re witnessing families forced to choose between paying rent, putting food on the table or covering basic school costs like technology, books and camp fees. 

“Perhaps most concerning is seeing children excluded from essential school activities because their parents simply can’t afford them.” 

Wilson said a concerning trend often overlooked was the significant increase in seniors over 65 seeking the budgeting service’s support because they were raising grandchildren. 

“These older New Zealanders, who should be enjoying retirement, are instead navigating school uniform purchases and technology requirements, creating substantial financial pressure on fixed incomes.” 

Flower said saving even a small amount each month could make a big difference when new-year costs roll around. 

“Even better, using a dedicated, high-interest savings account can help these funds grow with interest throughout the year, giving families a bit extra when costs arrive,” she said. 

Wilson encouraged those feeling financial pressure to reach out for support. 

“NHBS offers free, confidential financial guidance to anyone struggling with these costs. Our team can help with personalised budgeting solutions, negotiate with creditors if needed, and provide ongoing support as circumstances change.” 

Recent figures from credit company Centrix showed 491,000 New Zealanders were behind on their payments in January, an increase of 21,000 compared with December. 

Financial hardships reached the highest level since June 2020, with 14,700 accounts reported to be in hardship in January, an increase of 400 from the previous month and a 20% year-on-year increase. 

Among those cases, 46% relate to mortgage payments, 30% to credit card debt and 16% to personal loans. 

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.