Doing it tough out there? Who to call

The number of people struggling financially is really starting to increase.

Nearly 12% of Kiwis are currently behind on their debt repayments: personal loans, credit cards, BNPL etc.

The tough news is that inflation isn’t going anywhere and, therefore, neither are higher interest rates.

This week we learnt that food prices rose 1.5% in February from January. They are now 12% higher than a year ago. The highest food inflation rate seen since 1989 - Stats NZ.

Higher interest rates haven’t truly bitten yet either. Over $120billion of mortgage debt is due to roll from old (cheaper) rates to more current rates this year. 50% of this debt won’t be repriced until the second half of this year.

All of these factors make it harder to clear debt and to get on top of arrears.

For some reason, it can be really hard for us Kiwis to ask for help. It seems to be something we’ve mastered - not asking for help.

A lot of people will feel helpless or even embarrassed about their debt levels, so they will simply bury their heads in the sand.

We know deep down that this isn’t a solution. We have to commit to making a decision and getting on top of our problems.

It's time to start asking our mates 'How are you doing finance wise with everything going on'?

It's no different to the 'are you ok' movement.

These brave conversations don't start themselves.

For those really struggling, the good news is there are a number of organisations in New Zealand specifically designed to help people out.

Christians Against Poverty

Citizens Advice Bureau

Money Talks

Good Shepherd

Further help

There are a number of FREE to call 0800numbers and sometimes making that call is the catalyst to changing your entire financial future.

The brain often sees making the decision as rewarding as achieving the outcome.

Getting out of debt can be a real positive as you have to become someone you currently aren’t.

You have to make a commitment to sort it, then change habits and apply discipline to get to the other side.

This is all growth and you will learn valuable skills you can apply to other areas of your life OR re-teach.

The BNPL, credit cards, finance providers are very, very good at convincing us to take on debt and we have been in a world of very cheap and easy to access credit, but eventually, you want to break that cycle and realise you are the product.

Their ‘amazing’ credit solutions are helping us live beyond our means or spend tomorrow’s earnings. That’s not how we want to live forever.

Sure, debt can be useful in some circumstances, but for a lot of kiwis right now, they are behind on payments and can’t invest/save/plan for their future because they are paying off debt from decisions of the past.

The scary thing is that when things get tight, one thing to go is investing for the future or contributing to retirement via KiwiSaver.

We are making decisions for today rather than the future and it can be hard to get back on track.

Ask for help ?? Make a plan ?? Stick to the plan ?? Execute over time ?? Become a new person in the process ?? Learn new skills ?? Progress.

You’ve got this.

I asked ChatGPT if there is anyone that someone in NZ struggling with debt can contact for some help and support?

The New Zealand Government's MoneyTalks helpline: This free service offers confidential financial advice and support. They can provide information on budgeting, debt management, and debt relief options. The MoneyTalks helpline can be reached by phone at 0800 345 123, by text at 4029, or through their website.

Citizens Advice Bureau: This is a community-based organization that provides free advice on a wide range of topics, including financial issues. They have offices throughout New Zealand, and their website offers online advice and resources.

Financial Mentors New Zealand: This nonprofit organization offers free financial mentoring services to individuals and families in New Zealand. Their trained mentors can provide guidance on budgeting, debt management, and financial planning.

Sorted.org.nz: This is a government-backed website that offers free resources and tools for managing money and debt. It includes budgeting calculators, debt repayment planners, and guides on debt management.

The New Zealand Federation of Family Budgeting Services: This organization provides free budgeting advice and support through a network of local budgeting services. Their website offers a directory of local services and resources.

It's important to reach out for help and support when struggling with debt. These organizations and resources can provide valuable guidance and assistance in managing debt and improving financial well-being.

In the coming weeks I will be recording a podcast with a Financial Mentor. That will be helpful.

Save this email?because I can assure you that, unfortunately, more people will need these details in the coming years.

Have a good weekend,

Luke

P.s. You are one of?7,100+?recipients. Know?someone you could share this with? There is also a KTC podcast with over 14,600 monthly listeners.

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Did you know:?Kiwis?spend 13 hours a month worrying about their money?-?Mercer’s New Zealand talent trends study. (Someone messaged me saying 'is that all?!!!').??

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