East Auckland community-focused budget advisors are experiencing greater demand from people struggling to balance their personal and household finances, including managing debt.
With the nation’s economy hovering in the recession zone for most of this year, and the numbers of businesses failing and the unemployed going up, Pakuranga and Howick Budgeting Service (PHBS) says its “service provision has increased significantly in the last couple of years”.
The PHBS is based at the Pakuranga Library building and manager Megan Dangen told the Times “a lot of people are really feeling the pinch with the current economic situation in New Zealand”.
“The cost of living is going up, interest rates are high, and people just don’t have as much money to spend as they used to.
“It’s like a perfect storm. It’s causing a lot of financial stress and anxiety.
“As a result, we’re seeing a big increase in demand for our budgeting services. People are looking for help to manage their finances and get back on track.”
Dangen believes it isn’t difficult to understand why.
“When prices are rising faster than wages, it’s tough to make ends meet.
“That’s why we’re seeing a lot of people coming to us for guidance on how to budget effectively.”
The PHBS is also seeing people accumulating debt faster than ever before.
“It’s another big factor,” says Dangen. “With high interest rates, it’s causing a lot of stress and anxiety.
“We’re seeing a lot of people coming to us for help with managing their debt. And then there’s just the general sense of uncertainty.”
She and her staff feel first-hand people’s nervousness because of the economy’s unpredictability.
“They’re not sure what the future holds. They’re looking for ways to take control of their finances and plan for the future.”
When asked by the Times whether the service is feeling the impact of increased unemployment, Dangen says “yes”.
“Rising unemployment can lead to more interest from people seeking advice on the next steps in their lives, including their finances.
“We’re available to help navigate individuals to adapt to their new and changing circumstances.”
The PHBS provides “comprehensive” financial mentoring to families, guidance on managing their finances, creating budgets, and achieving long-term financial stability, Dangen says.
“The team helps families develop budget plans, prioritising essential expenses, and identifying areas for cost reduction.
“We also offer debt management strategies ensuring families can effectively navigate financial challenges.”
The PHBS can also educate people in money management skills, “leading families to be able to make informed financial decisions and build a secure financial future”, Dangen says.
