Westpac Offers Special Debt Consolidation Loan As Survey Shows New Year Financial Stress

Westpac NZ is supporting customers to pay off their debt faster with a special personal loan debt consolidation rate of 11.95%, as new research shows many households expect to face ongoing cost pressures in 2025.

A survey of 1,093 Westpac customers found nearly 30% said holiday spending would probably or definitely cause financial stress in the new year, and another 24% said it may do. 14% of respondents were planning to take on debt to pay for additional costs in the new year.

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says Westpac is offering the special rate to help customers who may be struggling with multiple debts to start 2025 on the right foot.

“Nearly half of customers we surveyed told us that money is an issue in their day-to-day lives, and we’re here to help them to manage their money effectively this year and beyond,” Ms Hearn says.

“The new year can be a stressful period, as people may have stretched themselves over Christmas and the holidays and then face a return to regular bills as well as one-off costs such as school stationery and uniforms.

“A debt consolidation loan can help people take control of their finances and simplify their debts to help pay them off faster – for example, bundling existing credit card, personal loan or buy now pay later debt into one loan at a competitive interest rate.

“Rather than feel like they’ve got repayments going in all directions – potentially with high rates and fees – a debt consolidation loan means one regular repayment at one interest rate with no Westpac fees. This can help ease the stress we know customers feel when they’re in debt, and potentially help them pay off the debt sooner.

“Our special rate of 11.95% is among the lowest in market, and currently the lowest personal loan rate among the major banks. We encourage customers to talk to us if they think it might be an option for them, or if they have any concerns about their post-holiday finances.

“We also have tools such as our CashNav app to help customers keep track of spending and saving, and have been encouraging customers to get a better handle on their money through regular education campaigns.”

The special rate is available on new debt consolidation applications made before 30 April 2025 and settled by 7 May 2025.

Despite lower headline inflation, 22% of respondents to the Westpac survey expected the new year period to be more financially stressful than last year, compared to just 5% who expected it to be less stressful.

Ms Hearn says it is encouraging that 49% of customers said they were extremely or very confident in their financial capability, up from 45% last year, but there was still a lot of room for improvement.

“Creating a budget, searching for information online, or financially upskilling through books and podcasts were the most common ways our customers reported boosting their financial capability in the past year. However, 36% said they haven’t done anything at all.

“While our economists are predicting a better year ahead for households as the economy improves and interest rates fall, the impact of three years of price rises is clearly being felt. Only 18% of survey respondents expected their financial situation to be better in 12 months’ time, compared to 21% expecting to be worse off.

“We want every New Zealander to be engaged with their finances and planning for a more secure future. Please talk to us, or a trusted advisor, if you need help taking the first steps.”

This interest rate will only apply for applications made before 30 April 2025 and settled by 7 May 2025, after which the interest rate will be subject to change without notice. Westpac NZ’s lending and eligibility criteria, and terms and conditions apply. Visit our website for full details.

The survey was conducted on The Westpac Customer Forum from 18 to24 November 2024.It was completed by 1,093 Westpac NZ Customers, aged between 25 and 84, with the margin of error 3% at a 95% level of confidence. 

Survey tables

Do you expect spending over the holiday season will cause financial stress in the new year? 

How will you pay for big additional costs in January and February? (Select all that apply)

In terms of financial stress, do you anticipate this January and February will be:

How confident are you in your financial capability?

Which of the following, if any, have you done in the last 12 months to boost your financial capability?

How would you describe your financial position in light of cost-of-living pressures?

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