'Debt is the worst poverty.'
'Debt is the worst poverty' - Quote by Thomas Fuller
Unmanageable debt creates poverty. It is stressful and negatively impacts the quality of our lives and our relationships.
Below is a link to a Gisborne Herald article from May-2019 when the Credit Contract Act was being reviewed. The rules around offering credit and interest caps have changed since then BUT people are still being lured into debt that keeps them trapped.
The answer to debt traps is not through legislation but through education and behavioural change.
Financial Mentors are trained to help people reevaluate their spending habits so that they can get onto the path that takes them towards their goals. It's often small adjustments but it is not easy. Getting into debt is easy. Getting out of it takes determined effort, but it can be done.
To become debt-free one of the first things you need to do is commit to stop booking up! Then take a critical look at your everyday spending and cut back on any unnecessary costs. Take the money you save on your cutbacks and use it to pay off your smallest debt. Knock it out as fast as you can then put that same money toward the next smallest debt, knocking that out as well. Keep going...
Find a handy debt organiser here
Gisborne Herald article from May-2019