Demand for consumer credit is at its lowest level in four years but debt defaults have doubled over the same period.
Consumer debt statistics by Veda Advantage have been provided in a briefing to the Minister of Consumer Affairs Heather Roy.
Credit cards are the highest area of default payments, growing by 23% in 2007 and 28% to the end of June.
An estimated 70% of credit card users pay only their minimum monthly balance.
Phone bill defaults were up 32% in the year to September 2008.