Managing debt is one of the most important aspects of financial wellbeing, and in New Zealand, many people find themselves grappling with multiple debts, especially in a climate of rising living costs. Whether it’s credit card debt, personal loans, or overdue bills, it’s essential to take control before it spirals.
Know where you stand
The first step in managing debt is getting a grasp on where you stand. List all your debts, including the amount owed, interest rates, and repayment terms. This exercise will give you a clear picture of what you owe and help you prioritise which debts to focus on first.
Seek guidance and resources
Once you have a full understanding of your debts, consider reaching out for help. Weave Hawke’s Bay can support you with negotiating manageable repayment plans and dealing with creditors. Our Financial Mentors will work with you to navigate any disputes and ensure you’re on the best path forward.
Consider Debt Consolidation
If you have several high-interest debts, consolidating them into one single payment might be a helpful option. By consolidating, you can simplify your debt repayment process and often secure a lower interest rate. However, be cautious about debt relief companies or agencies that promise “quick fixes,” as they may charge high fees.
Explore legal options
In New Zealand, formal debt relief options like No Asset Procedures (NAP) or Debt Repayment Orders (DROs) could help. These processes allow you to either write off your debt or restructure repayments over time, depending on your situation. Make an appointment with one of our financial mentors to determine if these legal options are right for you.
Create a Debt Management Plan
Working with a financial mentor can help you create a sustainable debt management plan. A mentor at Weave Hawke’s Bay can guide you through the process, providing advice and support as you work toward regaining control of your finances.
If you’re struggling with debt, you don’t have to face it alone. Our friendly, non-judgemental team are here to help. Book an appointment with our Financial Mentors today by calling 0508 678 910 or contacting us online.
