Bank's new offering addresses post-holiday financial strain
As the new year unfolds, Westpac NZ has recognised the financial burden carried by many following the holiday season.
With a new survey revealing that nearly 30% of customers feel financial stress due to holiday spending, Westpac has responded by offering a special personal loan debt consolidation rate of 11.95%.
This initiative aims to assist customers in managing various debts more efficiently as they navigate the cost pressures anticipated in 2025.
Survey insights on financial health
A recent Westpac survey of 1,093 customers highlighted a concerning trend, with 24% indicating that holiday expenses might cause financial strain, and 14% considering taking on debt to cover upcoming costs.
The findings underscored the challenges faced by many as they enter the new year, dealing with the aftermath of holiday expenditures coupled with regular financial obligations.
Special loan features and benefits
Sarah Hearn, Westpac NZ’s general manager of product, sustainability, and marketing, explained that the consolidation loan is designed to simplify customers’ financial commitments.
“A debt consolidation loan can help people take control of their finances and simplify their debts to help pay them off faster,” Hearn said.
By consolidating various forms of debt into a single loan with a competitive rate, customers can benefit from a streamlined payment process, potentially reducing the stress associated with managing multiple debts.
Enhancing financial capability
Despite the financial challenges, there is a silver lining: 49% of Westpac’s customers express confidence in their financial handling, a slight increase from the previous year.
Westpac encourages customers to utilise tools like the CashNav app, which helps track spending and savings, and to participate in financial education campaigns to further enhance their financial literacy.
Support and resources available
Westpac remains committed to supporting its customers through financial hardships.
The special rate for debt consolidation loans is available until April 30, for applications that are settled by May 7.
Hearn stressed the importance of seeking advice and exploring resources to improve financial management.
“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,” she said.
