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Westpac NZ estimates more than one in five customers expect to find this year more financially stressful than last year, with just 5 percent expecting it to be less stressful.
A Westpac survey of 1093 customers found money was an issue in their day-to-day lives.
The survey found 22 percent of customers were dealing with increasing financial stress, though 49 percent were extremely or very confident in their financial capability, compared with 45 percent last year.
"While our economists are predicting a better year ahead for households as the economy improves and interest rates fall, the impact of three years of price rises is clearly being felt," Westpac NZ general manager Sarah Hearn said.
Latest Stats NZ household cost of living data for the year ended December, which included interest rate costs, rose 3 percent for the year, and 3.8 percent on the previous quarter.
Hearn said inflation rates were falling, but that was not helping the outlook for financially stressed households.
"Only 18 percent survey respondents expected their financial situation to be better in 12 months' time, compared to 21 percent expecting to be worse off."
She said the bank was offering to help ease the debt burden with a consolidation loan of 11.95 percent.
"Rather than feel like they've got repayments going in all directions - potentially with high rates and fees - a debt consolidation loan means one regular repayment at one interest rate with no Westpac fees," she said.
"This can help ease the stress we know customers feel when they're in debt, and potentially help them pay off the debt sooner."
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