If Christmas and the summer break left your budget looking a bit worse for wear, you're not alone. Lots of Kiwis start the new year with a few more bills than they planned for.
The good news is that a clear plan, made early, makes a big difference.
Here's how to get back on track, step by step.
Last updated November 2026.
Start by listing everything you owe: credit cards, Buy Now Pay Later, store cards and any bills you've put off.
Pay overdue amounts first, to avoid late fees, then focus on your highest-interest debt.
Track your spending for a month, then set a budget you can actually stick to.
If a repayment's looking tight, talk to your lender early, before it's missed.
Combining debts into one loan can make repayments simpler, but it doesn't remove anything already on your credit file.
Start next year's Christmas fund now: even $10 a week is $520 by December.
If Christmas is going to be tight this year, see the ideas further down.
Sit down and write out exactly what you owe and when each payment is due. Include credit cards, store cards, Buy Now Pay Later instalments, and any bills you put off over the holidays. It's not fun, but you can't make a plan until you know what you're working with.
Start with anything overdue, because late fees and default interest add up fast. Then put any spare money towards your highest-interest debt first, while keeping up at least the regular payments on everything else. Every bit you pay off now means less interest from here on. If you need help working out a plan, call us on 0800 760 000.
For a month, track every dollar. You'll quickly see where your money's going and where there's room to cut back. Takeaways are a common one: swapping one or two nights a week for meals at home adds up quickly. Our guide on why tracking your spending matters has more tips.
A budget that's too strict won't last. Plan for your essentials and your repayments, then leave a little room for the things you enjoy. Our free 50/30/20 weekly budget worksheet is a good place to start. If you'd like a hand building a budget around your loan, we're happy to help.
If you can see a payment will be hard to make, get in touch with your lender before it's missed. Most lenders, including us, would much rather work something out with you early. Our guide to managing your loan repayments explains your options and rights. Free, confidential budgeting help is also available from MoneyTalks on 0800 345 123.
If you're juggling several debts with different due dates, combining them into one debt consolidation loan can make things simpler: one repayment, one due date, and possibly a lower rate. Check the term, though. A much longer term can mean paying more interest overall. Consolidation also doesn't remove defaults or missed payments already on your credit file, but keeping up your new repayments builds a better history from here. Our guide to debt consolidation in NZ explains how to weigh it up.
We won't let you get in over your head: we'll go through your budget with you to make sure the repayments fit.
It might feel a long way off, but putting a little aside each week makes next Christmas much easier. $10 a week is $520 by December, and $20 a week is $1,040. Set up an automatic transfer on payday so you don't have to think about it. Our Christmas budget guide has more ideas.
If you're worried about affording Christmas before it even arrives, you're definitely not the only one. A few things that help:
Set a total budget first, then split it between gifts, food and travel.
Suggest a Secret Santa or a spending limit with family and friends. Most people are relieved when someone suggests it.
Shop with a list, and compare prices before you buy.
Think about homemade or experience gifts, like baking, a voucher for your time, or a day out.
Share the cooking. A shared lunch where everyone brings a plate is a Kiwi classic for a reason.
If you're borrowing for Christmas, borrow only what your savings won't cover, and make sure the repayments will be done well before next Christmas. Here's more on Christmas loans.
List everything you owe, pay anything overdue first, then focus on your highest-interest debt while keeping up your regular payments. Track your spending for a month, set a realistic budget, and if a repayment's looking tight, talk to your lender before it's missed.
Set a total budget first, suggest a Secret Santa or spending limit with family, and look at homemade or experience gifts. If you borrow, borrow only what you need and make sure the repayments will be finished well before next Christmas.
Pay anything overdue first to avoid late fees. After that, put extra money towards whichever debt costs you the most, usually the one with the highest interest rate, while keeping up at least the regular payments on everything else.
No. A default stays on your credit file for five years from when it's listed, even if you pay it off, though it should be updated to show as paid. A consolidation loan can make repayments simpler, and keeping up with it builds a better credit history from here.
Debts aren't automatically written off. Under the Limitation Act 2010, a creditor generally has six years to take court action to recover a debt, and making a payment or acknowledging the debt in writing can restart that period. Separately, default information stays on your credit file for five years.
Set up an automatic transfer on payday into a separate account, so the money's out of sight. $10 a week adds up to $520 by December, and $20 a week to $1,040.
