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Higher incomes don't mean a lot for debt-stricken households seeking financial help, coaches and mentors say.
FinCap data shows the amount of bank debt recorded in closed cases dealt with by its financial mentors increased from $177 million in the second half of last year to $272.6m in the first six months of this year.
Its mentors reported that people refixing larger home loans at higher rates were part of the increase, because more people with mortgages were being supported by financial mentors.
Banking Ombudsman Nicola Sladden said her organisation had also noticed a debt crunch.
There was a spike in hardship and debt collection cases in July, she said.
"High interest rates and cost of living pressures contribute to the volume of the hardship related cases we see. Many of the cases received during July relate to customers who have been in arrears for some time, intensified by high interest rates and cost of living pressures, and the banks are now enforcing the debts."
FinCap spokesperson Jake Lilley said mentors were dealing with more people earning more than $1000 a week, and families with two incomes.
Higher interest rates were as clear pressure point, he said, as well as council debt - which was probably rates bills.
"Rates arrears are the first step where banks start to step in because they have to protect their security. That might be the push that gets people in the door [for mentor help]."
Claire Matthews, a banking expert at Massey University, said people having more debt was due to inflation.
"House prices go up so purchasers have to borrow more. Banks pursuing arrears more fervently would likely reflect the economic situation and a concern that people's situation is likely to worsen rather than improve in the short term, so there is a need to take action now."
Shula Newland, a financial coach, said "higher income" did not mean much these days.
In recent times she had dealt with homeowners who had had to rent out all the rooms in their house to remain afloat.
Higher-income families would usually qualify for less government support, she said, and the support available for those with only one child cut out at relatively low income levels.
She said people who were facing trouble should ask for help as soon as possible.
"If they put their head in the sand and don't get help it all catches up with them, they're looking at mortgagee sale and it is hard to get them out of such a big hole.
"There are things we can do but it's much harder when they've dug themselves a bigger hole."
New Zealand Banking Association chief executive Roger Beaumont said he was not aware of banks taking a harder line on debt.
"Our banks know that some customers are doing it tough in the current economic environment and are keen to support them.
"We'd encourage anyone experiencing financial difficulty to talk to their bank as soon as possible. The sooner you talk to your bank, the better placed they'll be to assess your particular circumstances and discuss options to try to find a way through."