Sanctions and stress (Debt Relief)

Tim, a social worker in South Auckland, was working with Jendy because she was unwell and was sole caregiver to 2 children. This case presented with financial issues related to a sanctioned benefit that had occurred when Jendy went into hospital care, and the sanctioning of her benefit resulted in missed payments with a finance company. Not recovering from the arrears, repossession action was started which increased Jendy’s anxiety and a resultant heart attack put her back into hospital. There were other stressful events happening in the household also. Jendy was able to explain her difficult circumstances from hospital and ABC Loans Company (not real name) stopped the repossession action.

Tim then helped her to obtain an Ngā Tāngata Microfinance Debt Relief no interest loan (with $14 repayments per week) which paid out ABC Loans Company. Two years on, Tim took us back to visit Jendy who’s nearly finished paying off the DRLS loan.

In her own words Jendy told how the no interest loan at the time ‘helped get rid of them’ and that ‘things have been much better’. When asked what would have happened if she had not got the loan, her comment was ‘my head would have been in a bad place. I would have got unwell again.’

Jendy says she has not taken on any more debt since she received the DRLS no interest loan.

Jendy was told she had good credit with Ngā Tāngata Microfinance after repaying the Debt Relief loan so reliably. This gave her a lift – something positive to take away: an organisation respecting her. She was also told that she would be able to apply for a NILS no interest loan if there was an essential item that needed to be purchased for the family and household. She wouldn’t need to rely on going to money lenders. If ever she felt desperate and that she had to go to a money lender, she was to call her budgeter or text Ngā Tāngata first. She was very pleased to receive this important information. In the meantime, she is very pleased to be able to manage her finances.

Note: all names including those of the loan companies have been changed. Any re-publishing of these case studies need the permission of Ngā Tāngata Microfinance Ltd.

Jendy’s budget 2013

Incomeper week
Sole parent$295
Disability Allowance$3.40
Family Tax Credit. Twins 15 years Plus 17yo and 20yo in the house.$193
??
Expenditure & Debtper fortnight
Groceries$115
HNZ$96
Power$50
Phone$5
Work & Income$31
Medical$10
School$10
Fines$15
Clothing$10
Instant Finance$70
Aotea Finance$45
Credit Union$35
??

Today there is no finance companies, no credit union debt, no fines, and repayments to W & I have reduced.