Queenstown, Dunedin and Central Otago are among eight South Island areas ranked in the 10 lowest for household arrears.
Credit reporting firm Centrix found in its latest credit indicator that national arrears levels for the likes of mortgages, personal loans, credit cards and vehicle lending had eased to 11.25% in April.
The 10 lowest areas in household arrears were led by Nelson city at 7.7% and then Tasman district and Wellington city.
Selwyn district was fourth followed by Queenstown-Lakes district at 8.6%, Dunedin city at 8.82% and Central Otago at 8.87%.
All 10 areas with the highest arrears were in the North Island, led by Wairoa district at 17.35%.
The 443,000 consumers falling behind in payments is 9.5% lower than a year ago, supported by improving economic conditions and lower interest rates.
However, 96,000 borrowers are more than 90 days overdue, with renter households feeling the pinch more.
Centrix chief operating officer Monika Lacey said there were signs of gradual credit improvement, but the recovery remained uneven across products, regions, and sectors.
Lower interest rates and a slow but steady economic recovery had helped ease debt servicing pressures for many households with arrears in mortgages, personal loans, credit cards and auto lending trending down, she said.
‘‘However, this recovery is not being felt equally. A portion of borrowers remains under financial stress, with some households still struggling to keep up with repayments.’’
The South Island’s April performance was consistent with previous years because its agricultural business regions had performed well.
Nationally, fewer people were getting behind in their residential mortgages repayments with April arrears easing to about 21,000 overdue accounts.
A 13% improvement from a year ago was credited to lower interest rates easing repayment pressure and stabilising household finances.
Car loan arrears levels fell to 5.3% and credit card arrears to 4% in April.
More than 134,000 borrowers now have mortgages of more than $1 million, up 15% year-on-year, largely reflecting higher house prices.
More than 18,000 borrowers hold mortgages above $2million.
Company liquidations increased 17%, tracking towards their highest level since 2010.
Hospitality had the sharpest rise, up 49% from a year ago with 414 businesses folding under cost pressures and softer spending.
Construction businesses had the most liquidations with 780 companies going under in the past year, up 7%.
