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Lorraine used a GetControl Loan to pay off spiralling high-interest debts.

Jude and her husband raised their family of four children in Wellington and owned their own home. When their youngest child was three years, Jude went back to work and worked until she reached retirement age. “We lived like so many people do – spending all that we earned. It was never a struggle, but we didn’t put anything away either. We had no insurances. When I look back, we didn’t do as well as I thought.” Later in their married life, Jude’s husband purchased a business in Palmerston North where they lived for 14 years. “We purchased the business, sold the house and moved to Palmy where we rented. While things went well initially, the business didn’t do well and it was eventually folded. My husband didn’t want to declare bankruptcy, so for many years we paid back our creditors and weren’t able to get back to the financial position we’d been in.” For Jude, there was a sequence of life events that led to her being in financial hardship. “When we reached retirement age, we moved to Foxton beach and rented a house there, which was wonderful. Then my husband lost most of his memory after a near-drowning...

“Predatory, high-cost lenders might finally be paying their dues as a recent decision sets an example by ordering refunds of unreasonable credit”

Loan applications to Nga Tāngata Microfinance to cover everyday household costs more than doubled last year. General Manager Natalie Vincent says it shows beneficiaries and low-income earners simply do not have enough to live on or to save.

Some local residents and neighbours are furious a high-cost lender has opened in Wellington near a large social housing complex and next to refugee and migrant support services.

Things were really tough for Paula* when she applied for a loan from Ngā Tāngata Microfinance. She had borrowed $3,000 from her bank and hadn’t been able to pay it back due to a change of circumstances, so the bank was planning to foreclose on her home of 23 years. “The bank wouldn’t let me pay the loan off over time – they were going to sell my house,” she says. A single mum in her 40s, Paula had arranged an overdraft with her bank a couple of years ago when she was laid off from her job. There was a seven week stand-down period before she could get a benefit from WINZ and she was really stuck for money. She says she struggled for money before that, but once she lost her job, thing went from bad to worse. On top of that, she hasn’t been able to work since then due to poor health. “On the benefit, there is no extra money. You just can’t get rid of the debt,” she explains. In desperation, and very stressed about losing her house, Paula turned to the Salvation Army. There she talked to a Financial Mentor, who recommended applying to...

Through no fault of her own, Tanya* (age 50) was in a really tough spot financially. She says she had never been in debt in her life, but then a partner left her with an outstanding loan that wasn’t hers. As the single mother of three children (two of who still live at home), she felt overwhelmed by the ever-increasing debt. “I’m normally really good at budgeting, but I just couldn’t get on top of the debt – especially with all the interest,” she explains. Tanya turned to Pakuranga and Howick Budgeting Service for ongoing advice, where one of their financial advisors suggested she apply to Ngā Tāngata Microfinance for a GetControl Debt Relief Loan. “I was really freaking out, but as soon as I heard I’d been accepted by Ngā Tāngata for a loan, it took all the pressure off – and all the anger that I’d been dumped with this debt. It was awesome,” she says. Tanya elected to pay off $25 a week and has since paid off the loan. “It was manageable with just a small amount a week. And not having all that interest continuing to add up was amazing. I absolutely recommend it to...

The Debtfix crew launched with a positive start to 2021, initiating a collaborative hui at Warkworth with major stakeholders who work to reduce New Zealanders’ personal debt.

A not-for-profit group is calling for the Commerce Comission to get tougher on those promoting pyramid schemes in Aotearoa. That comes after the Commission issued a ‘Stop Now’ letter to Shelly Cullen, a promoter of Lion’s Share – a suspected pyramid scheme.

Sandra* and her husband live in New Lynn in West Auckland and recently applied for a GetControl Debt Relief Loan to pay off some debts. Sandra had been working for a few months with a financial mentor at Henderson Budgeting, who suggested she should apply for a Ngā Tāngata Microfinance loan to reduce her debts. Sandra says she wasn’t sure initially, but she had a look at the NTM website and thought it looked good. “I read a bit of information and got hold of my financial mentor who emailed NTM and helped me apply for the loan.” She says the process was surprisingly easy. “To be honest, some of the questions worried me at first, like having to disclose personal information, but actually it was really easy. The money came through very quickly and went straight towards paying off our bills.” “I would definitely recommend a Ngā Tāngata loan to others in the same boat,” Sandra says. “I feel so relieved – like a real weight has been lifted off our shoulders. My husband is happy that the debt is off our record now, and we don’t have to keep worrying about it.” “Working with the financial mentor has...