Consumers are increasingly struggling to pay their personal loans and buy-now-pay-later bills.
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The latest data from credit bureau Centrix shows the total number of people behind on payments is up 11.7 percent from the same time last year.
Centrix managing director Keith McLaughlin said these repayment problems may flow through to the mortgage market.
"Arrears and defaults particularly in the personal lending and the buy-now-pay-later are climbing quite materially."
"We haven't seen the stress yet in the home lending or in the auto lending.
"Consumers do tend to prioritise what they pay first.
"I would expect to see the arrears move across into the car loans and into the home lending as things tend to tighten up."
The proportion of home loans with missed payments is still low, at only 1 percent in May.
However, Keith McLaughlin said the gloomy picture created by the high cost of living and rising interest rates meant more people may experience difficulties.
