Ask for help before debt takes hold
For the last six years the New Zealand Council of Christian Social Services has produced a Vulnerability Report which has tracked the experiences of the families affected by the impacts of the Global Financial Crisis.
A ‘new normal’ of desperation to find housing, food and sufficient income to survive has emerged for many families. Reports clearly demonstrate the huge complexity of client needs and the ever-increasing demand for social services.
This observation was mirrored at a recent meeting of FranCOSS, a networking meeting of social service agencies in Franklin. Members reported a significant increase in the number of clients who were simply overwhelmed by hopelessness.
Work and Income’s Special Needs Grants for Food have decreased by 28 per cent from December 2009 to December 2015 but the demand for food parcels has skyrocketed. Housing New Zealand waiting lists have dropped from over 10,000 (2009) to 3,500 (2015) yet the requests for emergency and social housing support have become overwhelming.
There is a view that Government has relied too heavily on the response of community organisations, charities and service providers to meet the needs of those with the least in our communities.
The New Zealand Council of Christian Social Services notes the services provided by community organisations are a critical component in the lives of many families. The needs of families have required service providers to employ highly qualified and experienced community workers, social workers and counsellors. However, there has been no increase in funding. In fact it has been eight years since there has been a sustained increase in resources for community-based service providers.
One of the distressing symptoms we see is the use of quick and easy loans. Whilst these lenders make money from interest on the money they lend, they make huge money through administration fees, and penalty interest.
In one case a chap asking for help had borrowed $3000 three years ago. He had been paying off the loan for that three years and occasionally had been late or missed a payment. When he came to see a budget advisor recently for help he owed the lender $3,500. The lender had been repaid their money; they were now extracting what you could only describe as ‘blood’ disguised as penalties and administration fees.
Franklin is well-served by agencies offering free budgeting services. The money lenders want not only all of your money; they will happily empty your house of all of your possessions if there is half a chance. And when they do that, it’s too late!
- Geoff Smith is the general manager - Franklin Family Support and Heartland Services
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