Dean had been with the budgeting service for a number of years. He was living on the unemployment benefit and not making ends meet. Dean and his partner were using the equity in their home to cope with the shortfalls in their budget. The outcome of Ngā Tāngata’s NILS no interest loan, if used effectively, would take him out of this cycle.
Dean was looking for ways to increase his income, making changes so he could seek work in another city. He decided to do this by making improvements to his home to enable him to rent out a room. This would increase his income, as well as making it possible to leave the house, relocating elsewhere to seek work if necessary.
The budgeting advisor (BA) was newly allocated to this client. The first budget that was sent to the Ngā Tāngata Loans Committee raised some queries and as a result the BA sat down with Dean and worked through the finances in a way that more accurately reflected the situation.
This proved to be very valuable for Dean’s long term financial planning. The resulting budget meant that some vulnerabilities, not previously identified, were examined. For example the first proposed budget did not account for the lag time in between making repayments on the NILS loan and when the newly created income would be generated.
Dean’s application produced more than the usual amount of personal narrative and the Ngā Tāngata team worked closely with the BA to smooth out potential miscommunications.
After receiving the NILS loan, Dean struggled financially in the beginning of the repayment period, as the renovated room took much longer than anticipated to complete. The BA advises “The good news is that I didn’t think he was capable of showing this kind of initiative when I first started working with him. He’s fighting harder now to succeed rather than just accepting a bad situation.”
The BA reported later that “It’s taken all winter but Dean does seem to finally have things sorted with the help of your NILS loan. The boarder moved in this week….. I’ve just redone a budget for him and he has a surplus of around $100 per week. I must admit I didn’t think this was going to happen. Dean should have the money saved to pay for his land rates when they are due in a few months.”
Dean’s initiative and hard work, plus access to the safe, fair credit of the NILS loan (ABLS), means he now has better control of his finances and his future.
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.
Dean’s Budget 2015
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