Westpac NZ has launched a special 11.95% p.a. debt consolidation personal loan rate, following research that shows more than a quarter of customers are concerned their holiday spending will cause financial stress in 2026.
Westpac's survey of 1,087 customers revealed 28% of people felt their holiday spending would probably or definitely cause financial stress in the new year, with a further 23% saying it may do.
23% of people also thought additional costs during January and February would cause extra financial pressure, including annual bills like insurance, paying off summer holiday and festive season expenses, as well as school and study supplies.
19% of respondents said they would use debt to cover those costs. With that in mind, Westpac is offering a way to potentially pay off debt faster with a fee-free special new debt consolidation personal loan rate of 11.95% p.a. for a limited time.
Westpac NZ Managing Director of Product, Sustainability and Marketing, Sarah Hearn, says debt consolidation loans can help customers better manage their debt, reducing stress at a potentially difficult time of year.
"After grappling with a few years of high costs, we think 2026 will be a better year for Kiwi families, and we want customers to start the year off on the right foot," Ms Hearn says.
Our customer survey showed 73% of people were either extremely or moderately concerned about the cost of living, similar to 2024 data, and the festive season can just add more financial pressure.
"Having multiple payments going out to cover multiple debts - often with high rates and fees - can feel overwhelming. Consolidating those repayments can help people take control of their money and make a plan to improve their long-term financial wellbeing.
"As part of our support for these customers, this week we're launching a special debt consolidation personal loan rate. Customers can borrow to $70,000 up to seven years at 11.95% p.a. for the duration of this offer.
"Over the past year we've seen an uptick in people applying for debt consolidation personal loans, as well as an increase in the amounts they're asking for, which is consistent with the cost pressures we know people are feeling. So, these changes should mean we can help more people to get back on track.
Ms Hearn says customers can use a debt consolidation loan to bundle their credit card, car, personal loan or other lending into one loan. They can pay down the loan faster, or pay it off in full, any time with no penalties.
"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," Ms Hearn says.
"The new year is a good time to take stock of your money situation, set some money goals for 2026 and draw up a plan to get there.
"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."
Survey tables
Do you expect spending over the holiday season will cause financial stress in the new year?
2025 |
2024 |
|
Definitely will |
8% |
8% |
Probably will |
20% |
20% |
Might or might not |
23% |
24% |
Probably won't |
34% |
32% |
Definitely won't |
16% |
15% |
What, if any, do you anticipate will be your big additional costs in January and February?
2025 |
2024 |
|
Annual bills e.g. insurance and tax |
35% |
37% |
Summer holiday |
25% |
25% |
Paying back festive season, Christmas or holiday debt |
19% |
20% |
School/study supplies (stationery, uniform, devices) |
14% |
13% |
Medical bills |
9% |
10% |
Childcare |
3% |
3% |
University fees |
3% |
3% |
Rental bond |
1% |
3% |
Other |
7% |
8% |
Won't have any big costs in January or February |
25% |
23% |
Don't know |
6% |
6% |
How will you pay for big additional costs in January and February? (Select all that apply)
2025 |
2024 |
|
With normal everyday spending/income |
65% |
61% |
Money I have put aside for these costs |
34% |
32% |
General savings or money put aside for something else |
26% |
29% |
Debt e.g. credit card, overdraft, revolving credit, borrowing from friends or family |
19% |
20% |
Other |
1% |
2% |
Don't know |
1% |
2% |
In terms of financial stress, do you anticipate this January and February will be:
2025 |
2024 |
|
More stressful than last year |
23% |
22% |
About the same |
72% |
73% |
Less stressful than last year |
5% |
5% |
This interest rate will apply for new applications between 19 January 2026 and 30 April 2026 and settled by 7 May 2026, 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 Panel from 10 to 17 November 2025. It was completed by 1,087 Westpac NZ Customers aged between 25 and 84, with the margin of error of 3% at a 95% level of confidence.
