"[Debt] takes the next priority and stuff like children's Christmas presents are way down the budget."
Last Christmas, queues outside the Auckland City Mission snaked for a block as people lined up for food parcels and gifts for their children.
In the fortnight before Christmas Day, 2500 parcels were donated to needy families, said missioner Dianne Roberston.
"Every Christmas in the last five years has been busier ... so given the volumes of people coming to us at the moment, there will be a greater need this Christmas," she said.
Both organisations said the high demand was due to economic recovery not trickling down to lower socio-economic groups, welfare reforms and rising living costs.
However, the demographic of those requiring help was changing. "We're now seeing families coming through who are working but have had their hours reduced, or they may have lost an income and that's putting pressure on them," said Mrs Waugh.
For single mother Julie Finemore of Glenfield, the rising rent, grocery, water and power costs leave little to plan a Christmas for her four children.
Seeking assistance meant she could give her children a hearty meal and presents on Christmas Day.
"I'm a solo mum on the benefit and there are lots of people like me out there in hard times," she said.
She first got Salvation Army help in 2011 and said although Christmas was about spending time with her children, aged 3, 10, 15, and 17, it was special being able to have extra treats.
"I do get a little bit embarrassed asking for help, but ... every kid deserves a decent Christmas, it doesn't matter if you're poor or you're rich."
How to help
• Donate gifts to the Wishing Tree Appeal in K-Mart stores
• Take food to Salvation Army offices for Christmas hampers
• Collect gifts and food from friends, family and co-workers to donate
• Visit www.salvationarmy.org.nz or aucklandcitymission.org.nz for more information