Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Personal Debt Being Repaid With Budgeting Help


A press release from the NZ Federation of Family Budgeting Services (NZFFBS), prompted by the annual review of results achieved by affiliated budgeting services

Personal Debt Being Repaid With Budgeting Help

Over $million 48.5 has been returned to the economy in the 12 months to 30 June 2004 through the work of budget advisers working in community organisations providing free budgeting advice under the auspices of the New Zealand Federation of Family Budgeting Services Inc.

Budgeting services working with more than 33,000 families in the last year were presented with over $million 320 debt of which $million 69 was overdue for payment by the time the client approached the budgeting service for help.

“Sadly this means that every family being helped long-term by the budget adviser had on average debt of $23,778 of which $5,089 was late in being paid,” says Shirley Woodrow, Federation President. She adds though that “Our member budgeting services may be struggling to attract volunteers and meet the increasing costs of complying with laws but they continue to achieve remarkable results”.

By helping clients work to household budgets and showing them how to negotiate with creditors the budgeting services identified that each family had on average repaid debt of $3,769.00. When over 70% of clients seeking budget advice rely on benefits as a main source of income this is a special result.

Personal debt continues to grow at an alarming rate with the average family now owing 37% more than they did last year. The only encouraging news from this year’s findings is that overdue debt is increasing at a slower rate than each of the last 3 years.

Mrs Woodrow sounds a cautionary note that if people continue to borrow at these rates which is well in excess of inflation and wage increases they will over-extend themselves and end up with poor credit ratings and losing purchases through repossession. .

People should take independent advice before committing themselves to debt.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news