New data from Centrix shows that 400,000 people ended last year behind on paying their bills.
The number of people in debt from missed home loan payments and household bills has gone up by 10 percent from 2021.
However, as more people go into debt, charities designed to help low-income Kiwis back on their feet are expecting to lose Government funding by June.
Nga Tangata Microfinance chief executive Natalie Vincent says that she's noticed an increase in people needing their services over the last few months.
"What's been alarming to us looking at those figures is the increase in people who are applying for new consumer finance, like personal loans or credit cards, to get them through this time of high cost of living."
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