Becoming “fighting fit” with money starts with “disciplining” debt

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Nga Tangata Microfinance Trust endorses Money Week’s theme: Get your money “fighting fit”.
Getting into shape physically requires regular discipline in diet and exercise. Our finances also
require regular attention. Firstly, for overall financial health, the amount we pay on debt must be
brought under control.
The Salvation Army’s 2015 State of the Nation Report showed that average
household consumer and credit card debt rose by almost 5% in 2014, to $12,200.
One of the 5 key areas the Commission for Financial Capability has identified for getting ahead
financially is becoming “debt smart”, with people getting out of high interest debt faster being one
of the key steps. A single high interest debt might seem harmless but the interest rates and
excessive charges of third tier and pay day lenders can quickly ensnare families into a cycle of
unmanageable debt that limits food for the children and other family essentials.
Budgeting Services provide a tremendous support to their clients who are under the burden of
high interest debt; providing a budget plan, negotiating with creditors where possible and advising
ways that limited income can be stretched.
Robert Choy, Executive Officer of Nga Tangata Microfinance Trust, says “Budgeting Advisers now
have another tool in their toolbox”. In partnership with Kiwibank and the New Zealand Federation
of Family Budgeting Services, NTMF is expanding nationwide its provision of no interest loans to
qualifying low income families. These loans are safe, fair and affordable, in stark contrast to loans
offered by high interest lenders.
Robert gives the example of a couple with a low level of English proficiency and a lack of
understanding of legal contracts who had taken several high interest loans, and also had a very
high electricity debt. Their high debt servicing costs resulted in very little left for food. Their
Budgeting Adviser negotiated with the electricity company to put a payment plan in place.
“The third tier lenders were charging in excess of 40% interest. Nga Tangata Microfinance’s loan
for $2,498 meant that three of the couple’s debts could be paid off and replaced with a smaller nointerest
repayment over two years. This meant more money for food each week. And the
Budgeting Adviser has worked with the couple to ensure they avoid taking on any more high
interest loans and they are now nearing successful repayment,” says Robert.
Budgeting Services and organisations like Nga Tangata Microfinance support people to become
“financially fit”. Attacking one of the biggest hindrances, unmanageable high interest debt, just
makes good ‘cents’ in Money Week.

2 COMMENTS

  1. Or, give the scum money lenders the middle finger and tell them to go fuck themselves, default on debts they sold you out into and live , hence forth a debt free life style. Try lighting the barbie with the hollow threats they’ll send you.
    Fuck wimping out . Get tough . Take this shit to their offices . It’s not your fault the money peddler mates of jonky and his quisling politicians are taking advantage of you after having sold your electricity, phone, public transport etc and aided banks to pump real estate prices to beyong madness thus forcing you into debt or go hungry ! Fuck that ! It’s not your fault. Fight back for Gods sake !

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