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

Virginia McCreadie is a financial mentor for Budget House Taupō. Like most financial mentors, she works with clients from all walks of life. “There is a perception that we deal with only one income bracket,” says Virginia. “But we work with clients right across the spectrum, from those who are homeless with no income, to those who are wealthy with assets – and everyone in between.” “Whether you have a little or a lot of money, financial challenges happen,” she explains. “Things can change in the blink of an eye; big life events like a marriage break-up, a death in the family or the impact of COVID-19 – there are all sorts of reasons that people need financial help. We’re here to help with people in crisis, but also with financial resilience and future planning, so there’s less chance that a financial crisis will happen again.” Organisations like Ngā Tāngata Microfinance are targeted at those who have fewer options, says Virginia. “ They’re here to ensure that people who were okay but now aren’t, are able to be okay again,” she explains. “Especially for those on low incomes who need to pay off high-interest debt or get the essential things...

In November 2020 Nga Tangata Microfinance released a social impact report undertaken by Impact Lab.

Recently the Commerce Commission and the Financial Markets Authority have announced they will start a campaign to help try and combat as well as educate the Pacifica community on scams. Natalie Vincent from Ngā Tāngata Microfinance talks with Dennis Brown – Emmanuel.

Ngā Tāngata Microfinance and Child Poverty Action Group speak about the danger of high interest debt on low income families in New Zealand. Natalie Vincent, Ngā Tāngata Microfinance’s general manager, speaks about the effect of the inability to save when on a low income.

Increased stress and hardship await families if the Coalition Government does not address the needs of those on low incomes, according to Ngā Tāngata Microfinance and Child Poverty Action Group.

The devastating impact of COVID-19 on New Zealand’s finances is already starting to show with 10 per cent of New Zealand households already missing a rent or mortgage repayment and 34 per cent facing financial difficulties. (The research was carried out in April 2020.)

The Commission for Financial Capability surveyed 3,085 people on how their personal and household finances were affected by the COVID-19 pandemic. They were asked about their income, payment of bills, borrowing, debt, savings and ability to pay for other essentials such as food. This questionnaire was designed the University of Bristol and distributed to eight countries. The New Zealand fieldwork took place between 14-28 April 2020.

Truck shop operators can offer essential items at their usual high interest credit. This creates debts that can result in long term financial difficulties for their customers.

Low-interest loan providers braced for surge in demand.