The stretched majority: A nation in financial distress

The pressures that once defined the struggles of lower income earners now apply to many more New Zealanders.

Being “middle-class” no longer comes with the financial security it once did.

Dave Letele’s heart wrenching announcement of the closure of the food bank is a clear indication of this shift, highlighting the increasing number of everyday Kiwis now forced into survival mode.

At Money Sweetspot our customers earn an average of $70,000 a year, and 92% of these customers are employed.

Despite earning higher than the national median income of $61,000 per year, many of the people we talk to are constantly juggling their finances and are still struggling to stay afloat.

Of the 368 people who applied for financial resets in September, we were only able to help nine.The remaining 359 applicants remained burdened with nearly $4 million of debt (most of which at interest rates of more than 30%). And while we did our best to connect them with financial education resources and local financial mentors, the reality is that we, and other community and social providers simply don’t have the capacity or resources to help everyone.

The closure of Letele’s food bank is a symptom of a much larger problem, one that affects the stretched majority of New Zealand.

With growing numbers of working Kiwis in financial distress, now more than ever, we need bold social investment solutions that provide the funding and resources to support those in need.

Without immediate action, the financial debt hangover of 2025 will be more than just an economic issue – it will be a crisis that defines the future of New Zealand’s expanding stretched majority.

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Check out the full opinion piece here