Credit Card Debt & Spending Statistics New Zealand 2025
New Zealanders owe $6.3 billion on credit cards, and pay roughly $557 million in interest to banks every year. Our guide uses official RBNZ data to show what we owe, where we spend, and how to avoid the credit card debt trap.
Updated 30 December 2025
Key Findings
The Bigger Picture
To outline what's important, our guide covers:
Data Sources
All data is sourced from the Reserve Bank of New Zealand (RBNZ):
- Total credit card debt: $6.3 billion outstanding in November 2025
- Interest-bearing debt: $2.8 billion - 51% of balances aren't being paid off when they're due
- Annual interest paid: ~$557 million - this is money going straight to banks (and treated as revenue)
- Average annual interest rate: 19.7% on interest-bearing balances - this has been stable for the last 20 years
- Annual credit card spending: $54 billion flows through New Zealand-issued credit cards each year
- Monthly spending: $4.6 billion - $4.0B domestic + $671M overseas (overseas includes online shopping, subscriptions and travel-related expenses)
- Total credit limits: $21.0 billion - banks have given New Zealanders massive borrowing capacity, but with $6.3 billion outstanding, it's a utilisation rate of 30.1%
The Bigger Picture
- $7 billion in interest has been paid over 10 years (2015-2025) - that's money straight from working New Zealanders' bank accounts to bank profits. It's a huge amount of money and, arguably, wealth extraction.
- Interest rates increased while the OCR crashed: In 2000, the credit card rate was 18.0%. In 2025, it's 19.7% - a 1.7% increase. Meanwhile, the OCR went from 6.5% (2000) to 0.25% (2021) and back to 4.25% (2025). Banks never passed OCR cuts on to credit card holders.
- There is some good news - fewer New Zealanders are carrying debt than ever: In 2000, 72% of credit card balances were interest-bearing. In 2025, it's 51%, a significant improvement if it feels like there is too much credit debt right now.
To outline what's important, our guide covers:
- Know This First: How to Avoid the Credit Card Debt Trap
- Current New Zealand Credit Card Debt Snapshot
- The Real Cost of Credit Card Debt
- Where New Zealanders Spend on Credit Cards
- Credit Card Interest Rates Explained
- Who's Paying Credit Card Interest (And Who's Not)
- Frequently Asked Questions
Data Sources
All data is sourced from the Reserve Bank of New Zealand (RBNZ):
- C12: Credit card balances (month-end and daily average)
- C13: Credit card spending (domestic and overseas billings)
- Data current as at November 2025
Know This First: How to Avoid the Credit Card Debt Trap
With half of all credit cards unpaid and earning the banks around half a billion dollars of interest revenue every year, we list must-know tips to avoid this debt drag altogether:
- Pay your balance in full every month: This is the only rule that matters. If you pay in full, you pay zero interest and get 44-55 days of free credit. If you don't, you're paying on average 19.7% per year - the most expensive debt most people will ever have.
- Never pay just the minimum: A $5,000 balance at minimum payments (of 2 percent) takes 41 years to clear and costs $18,570 in interest. You'll pay back $23,570 for borrowing $5,000 - this is how banks make their money.
- If you're carrying debt, act now: Consider transferring to a 0% balance transfer card or consolidate to a low-interest credit card offer. Halving your interest rate can save thousands - our balance transfer guide explains your options.
- Lower your credit limit: Banks give you more credit than you need because it increases their profit when you use it. Call your bank and reduce your limit to what you actually need to help keep debt low.
- Use rewards wisely: Airpoints credit cards and cashback credit cards are only valuable if you pay in full. Earning 1% cashback while paying 19.7% interest is a net loss of 18.7%. The rewards system is designed to encourage spending - don't get a rewards credit card if you're not repaying the balance. We suggest considering a balance transfer and focusing on repaying the debt.
Current New Zealand Credit Card Debt Snapshot (November 2025)
The table below shows the current state of credit card debt and spending in New Zealand, based on the latest RBNZ data.
Know This: Half of all credit card balances - $2.8 billion - are accruing interest at 19.7%. This results in roughly $557 million in annual interest payments to banks. That's money New Zealanders could be saving, investing, or using to pay down mortgages. Instead, it's generating profit for already very profitable banks.
Know This: Half of all credit card balances - $2.8 billion - are accruing interest at 19.7%. This results in roughly $557 million in annual interest payments to banks. That's money New Zealanders could be saving, investing, or using to pay down mortgages. Instead, it's generating profit for already very profitable banks.
| Measure | Amount | Notes |
|---|---|---|
| Total credit card debt | $6.3 billion | +0.5% from October |
| Interest-bearing debt | $2.8 billion | 51.2% of all balances |
| Total credit limits | $21.0 billion | flat |
| Credit utilisation rate | 30.1% | 30% of available credit used |
| Monthly spending (domestic) | $4.0 billion | +5.8% YoY |
| Monthly spending (overseas) | $671 million | +6.1% YoY |
| Interest rate on debt | 19.7% | Barely changed in 25 years |
The Real Cost of Credit Card Debt
Most people don't understand how expensive credit card debt really is. The table below shows the actual cost of a $5,000 balance at different repayment rates.
Know This: At minimum repayments (we've used an entry-level 2% of balance), a $5,000 debt takes 41 years to pay off.
Know This: At minimum repayments (we've used an entry-level 2% of balance), a $5,000 debt takes 41 years to pay off.
- You'll pay $18,570 in interest alone - nearly four times what you borrowed.
- The difference between minimum payments and fixed $250/month is $17,459.
- We believe long-term credit card debt is wealth destruction and a huge source of 'working poverty'.
- Our example below is based on 19.7% interest rate, minimum payment of 2% or $25 (whichever is greater)
| Starting Balance | Time to Pay Off | Total Interest Paid | Total Repaid |
|---|---|---|---|
| $1,000 | 11 years | $1,714 | $2,714 |
| $3,000 | 27 years | $8,142 | $11,142 |
| $5,000 | 41 years | $18,570 | $23,570 |
| $10,000 | 52 years | $43,640 | $53,640 |
Credit Card Debt Trends (2010-2025)
The table below shows how credit card debt and interest rates have changed over time. Notice that interest rates have barely moved - even when the OCR dropped to record lows.
Know This: Peak debt was $7.4 billion in late 2019. COVID caused a significant drop in spending as people cut back and paid down debt. But debt is creeping back up, and credit card interest rates never dropped - banks kept charging around 20% even when the OCR was 0.25%.
Notes: Our table uses the November figures each year, sourced from the RBNZ C12 data
Know This: Peak debt was $7.4 billion in late 2019. COVID caused a significant drop in spending as people cut back and paid down debt. But debt is creeping back up, and credit card interest rates never dropped - banks kept charging around 20% even when the OCR was 0.25%.
Notes: Our table uses the November figures each year, sourced from the RBNZ C12 data
- Orange = pre-COVID peak.
- Blue = COVID period (debt dropped as spending fell)
- Our interest estimate = average interest-bearing balance × average interest rate
| Year | Total Debt | Credit Limits | Interest Rate | Utilisation | Est. Annual Interest |
|---|---|---|---|---|---|
| 2010 | $5.5B | $17.6B | 18.8% | 31.2% | ~$714m |
| 2015 | $6.6B | $22.0B | 20.2% | 30.0% | ~$707m |
| 2019 | $7.4B | $23.4B | 19.5% | 31.5% | ~$737m |
| 2020 | $6.5B | $22.7B | 19.4% | 28.5% | ~$632m |
| 2021 | $6.1B | $21.8B | 19.7% | 27.7% | ~$575m |
| 2022 | $6.3B | $21.3B | 19.8% | 29.5% | ~$540m |
| 2023 | $6.3B | $21.1B | 20.3% | 30.1% | ~$566m |
| 2024 | $6.2B | $20.8B | 19.9% | 30.0% | ~$584m |
| 2025 | $6.3B | $20.9B | 20.1% | 30.1% | ~$571m |
Where New Zealanders Spend on Credit Cards
New Zealanders put approximately $54 billion through credit cards each year - $46 billion domestically and $8 billion on overseas-based transactions. We outline how that's changed in the table below.
Know This: Overseas spending on NZ cards hit a record $8 billion in 2024 - up 27% from pre-COVID levels. This is driven by international travel recovery and online shopping from overseas retailers.
Given the billions spent on non-NZD/foreign currency transactions, fees (typically 0-3%) add up quickly. Our guide to credit card FX fees has more information.
Know This: Overseas spending on NZ cards hit a record $8 billion in 2024 - up 27% from pre-COVID levels. This is driven by international travel recovery and online shopping from overseas retailers.
Given the billions spent on non-NZD/foreign currency transactions, fees (typically 0-3%) add up quickly. Our guide to credit card FX fees has more information.
| Year | Domestic | Overseas | Total | YoY Change |
|---|---|---|---|---|
| 2019 | $41.8B | $6.3B | $48.1B | - |
| 2020 | $40.0B | $3.5B | $43.5B | -10% |
| 2021 | $42.3B | $3.5B | $45.8B | +5% |
| 2022 | $45.3B | $5.4B | $50.7B | +11% |
| 2023 | $46.6B | $6.9B | $53.5B | +6% |
| 2024 | $45.7B | $8.0B | $53.7B | flat |
Credit Card Interest Rates Explained
Credit card interest is calculated daily on your outstanding balance (meaning the amount you didn't repay, plus any new purchases you've made). The RBNZ tracks two rates - the standard rate (what's advertised) and the effective rate (what people actually pay).
As shown in the table below, the blended 10.1% rate looks low because it includes people paying off in full (who pay 0%) and promotional rates. If you're carrying a balance, you're likely paying closer to 20% unless it's a low-interest credit card.
As shown in the table below, the blended 10.1% rate looks low because it includes people paying off in full (who pay 0%) and promotional rates. If you're carrying a balance, you're likely paying closer to 20% unless it's a low-interest credit card.
| Rate Type | Current | What It Means |
|---|---|---|
| Standard credit card rate | 20.1% | Advertised purchase rate |
| Weighted average (interest-bearing) | 19.7% | Actual rate on debt accruing interest |
| Blended average (all balances) | 10.1% | Includes 0% promo and paid-off balances |
| Cash advance rate | 21-25% | Higher rate, no interest-free period |
Who's Paying Credit Card Interest (And Who's Not)
Not everyone with a credit card is paying interest. Some people pay in full every month and essentially use their card as a free payment tool. Others carry balances month to month and pay nearly 20% interest. Here's the split:
Know This: Just under half of cardholders are using credit cards correctly - paying in full and paying no interest. The other half are in the debt trap, paying 19.7% on $2.8 billion. If you're in the second group, our guide to repaying credit card debt on an average salary is a helpful starting point.
Know This: Just under half of cardholders are using credit cards correctly - paying in full and paying no interest. The other half are in the debt trap, paying 19.7% on $2.8 billion. If you're in the second group, our guide to repaying credit card debt on an average salary is a helpful starting point.
| Balance Type | Amount | Proportion | What It Means |
|---|---|---|---|
| Non-interest-bearing | $2.7 billion | 48.8% | Paid in full - (likely) using credit cards correctly |
| Interest-bearing | $2.8 billion | 51.2% | Carrying debt at 19.7% - this is an expensive debt trap |
The Good News: New Zealanders are Getting Smarter
The proportion of balances that are interest-bearing has dropped significantly over 25 years, as shown in the table below.
Our View: This is genuinely good news. In 2000, nearly three-quarters of cardholders were in the debt trap. Today, it's just over half. Financial literacy is improving, and more Kiwis understand that paying in full is the only way to use a credit card without losing money.
Our View: This is genuinely good news. In 2000, nearly three-quarters of cardholders were in the debt trap. Today, it's just over half. Financial literacy is improving, and more Kiwis understand that paying in full is the only way to use a credit card without losing money.
| Year | Interest-Bearing % | What This Means |
|---|---|---|
| 2000 | 72% | Nearly 3 in 4 cardholders paying interest |
| 2010 | 69% | Slight improvement |
| 2015 | 63% | More people paying in full |
| 2019 | 60% | Pre-COVID baseline |
| 2025 | 51% | Just over half - a big improvement over 20 years |
Frequently Asked Questions
Why haven't credit card interest rates dropped like mortgage rates?
Banks have no competitive pressure to lower credit card rates. Most people don't compare cards based on interest rates (they focus on rewards), and the people paying interest often can't easily switch. The result is that banks earn a 16%+ margin on credit card debt vs 2-3% on mortgages - we believe credit cards are the banks' most profitable product.
How much credit card debt is too much?
Any interest-bearing credit card debt is too much - if you're not paying your balance in full every month, you're paying the most expensive interest rate available to consumers. The average New Zealand cardholder has about $2,500 in credit card debt - but 'average' doesn't mean 'acceptable'.
Should I close my credit card to avoid debt?
Not necessarily - a credit card paid in full every month costs you nothing and gives you 44-55 days of free credit, purchase protection, and rewards. The problem isn't the card - it's carrying a balance after the month your payment is due. If you can't trust yourself to pay in full, consider switching to a debit card or reduce the limit on the credit card to something you can afford.
What's a good credit limit?
Only what you can afford to pay off in a single month. Banks will offer you limits of $2,000, $10,000, or more - but that doesn't mean you should accept them. A lower limit protects you from getting into debt.
Are rewards credit cards worth it?
They can be, but only if you pay your statement balance in full every month. A card earning 1% cashback while you pay 19.7% interest is a net loss of 18.7%. Rewards are designed to encourage spending - banks wouldn't offer them if they didn't make money. Pay in full, earn rewards, pay zero interest. That's the only way rewards work in your favour.
