Whānau on low-incomes often have no choice but to take out high-interest loans that are unaffordable and unsustainable, just to meet their everyday needs – which often creates debt and hardship.
Published: Rāapa, 02 Whiringa ā-nuku, 2019 | Wednesday, 2 October 2019
We know that high interest loans are a real trap for whānau in low-income areas. Te Puni Kōkiri has joined with other agencies and community organisations to develop a strategy to help people facing financial hardship due to problem debt.
The Safer Credit and Financial Inclusion Strategy is a partnership between Te Puni Kōkiri, Ministry of Business, Innovation and Employment, the Ministry of Social Development, the financial services industry and community partners.
Using a Whānau Ora approach, Whānau Ora Navigators and providers will be offering support and access to good advice to help families facing financial hardship reduce their debt and manage their finances.
This strategy will also make the financial service system more accountable to our people and tailor support and products that best suits the needs of communities. The strategy will seek input from the most affected communities to create solutions that work for those in most need. The Safer Credit and Financial Inclusion Strategy works alongside new measures introduced by the Government to stop families falling into hardship caused by predatory lending. This includes new consumer credit legislation which is expected to come into force in 2020.