For many years, Budget Advisers have helped people create weekly budgets to help them manage their finances. These days, there is a lot more to the role, and they are now known as Financial Mentors.
Financial mentors call out predatory lenders and help people find solutions to debt
Recently the government introduced changes to the law limiting the amount of fees that can be added to a loan, but these fees can still mount up. Our financial mentors ensure clients are aware of these before an agreement is signed, as well as checking that clients are able afford the loan.
Under the Credit Contracts and Consumer Finance Act, mentors also look out for companies abusing the law.
Our client, Judy* was given a short-term loan of $250 by an unscrupulous lender, which doubled to $500 in one day, and almost quadrupled to $997 in just two months. With mentor intervention, the debt was settled at the original sum of $250, which saved Judy $747.
If you or someone you know is struggling with a debt, we are here to listen and help. Our Financial Mentoring service is free of charge, and we will walk alongside you to identify any failings by the lender. Alternatively, we may be able to help you find a solution to make it more affordable for you!
Contact our financial mentors on 0508 396 678 for more information.
PICTURED ABOVE: Family Works Financial Mentor Nicole talking money in Wanaka.
*Name in story changed for privacy reasons