People are always there and ready to help you
When people are vulnerable it is so easy for them to pile up mountains of debt, which further adds to their distress and feelings of hopelessness.
Two years ago, Rachael (not her real name) was at a financial and emotional rock-bottom when she turned to Debtfix for help.
Please note the following story discusses the impact of mental well-being, which may have some triggers. Help is available at the Mental Health Foundation.
Throughout Rachael’s life she has experienced times of depression and she had reached the point where there seemed little point in carrying on. In her state-of-mind, she thought that if she racked up a whole lot of debt her family would have what they needed and be looked after when she was gone.
“I would have the family all sorted with clothes and food and set up for the next few years while they got over it,” she says. “That’s how I got into debt and it was very easy because lending companies just throw money at you.”
When her treatment was changed Rachael’s mental well-being significantly improved but then she had to deal with unmanageable debt and demanding finance companies. She had a purpose in life but the debt was a relentless weight on her shoulders and her financial situation wasn’t improving.
“The debt was the only thing holding me back and I didn’t know where to go to, who to talk to and what to talk about. At this stage, I hadn’t even told my husband how bad it was because he had enough to worry about – about me – without adding the debt into the mix.”
Rachael always had a good income and her husband left her to manage the household finances. She always managed to pay rent, power, internet, and the kids were fed and clothed, but debts continued to grow.
“Company A wanted payment, so I used Company B to pay them and then I went to Company C to get more money. It was ridiculous and got out of control.”
She wasn’t borrowing money for anything significant, like a car, and it was too easy for her to go online and apply for a loan that deposited $3000 into her bank account within an hour. When she wanted to make a change she was googling about bankruptcy and found Debtfix.
In her early 20s she had been bankrupt, and she didn’t know if it was an option to do this again but once she was working with Debtfix she discovered a better alternative for her. The debt solution that best suited Rachael’s situation was a creditors proposal that she didn’t know existed, at the time.
The pros and cons were clearly explained, and she felt there were options for a debt solution that suited her and her family.
Rachael has been frank and open with Debtfix about changes to her personal health and family finances. Recently, Rachael became unwell again and in response, Debtfix reviewed her debt repayment plan. The Crew relieves the stress for Rachael by managing the communication with creditors and she no longer deals with their phone calls or emails.
“I can just get on with life.”
She feels Debtfix also supports the organisations she owes money to, making sure her payments are made to them.
“I’d hit rock bottom, but it is my responsibility. I can’t just hide my head in the sand and hope it all goes away.”
She wanted to fix the situation but didn’t have the experience or knowledge that the Debtfix Crew could provide. When Covid hit, her husband was made redundant and the family finances changed, which meant the payments in the creditors proposal were no longer achievable. Debtfix modified the payment plan and now, he has another job that doesn’t pay as well but everyone in the family is happy and the debts are still being paid off.
There has been a lot of give and take and Rachael sees there is mutual respect between her and Debtfix.
“It took so much effort for me to reach out for help for this, which I’ve learnt through my mental health journey. You need to reach out for help regardless of whether you think it’s a big issue or a little issue. People are always there and ready to help you.”
Debtfix told Rachael they were available, and they could help and she wasn’t going to turn her back on that offer.
She would like to see it more challenging for people to borrow money in New Zealand. She sees 18-year-old students offered packages with credit cards and considers that at that age she would never have thought about paying back the loan.
“It’s too easy for vulnerable people. I thought I was smart with money but when you go onto the internet you don’t even talk to anyone on the phone. You just fill out a form, send them some documents – it was just too easy.”
Now, Rachael has five- and ten-year plans, things she wants to do and accomplish. She knows how she wants to be a better person, mother and wife. The family talks more openly about feelings and money, everyone in the family is learning about putting a little bit aside, to save for something special.
“I’ve finally learnt that money isn’t the be all and end all. I used to think if I wasn’t here, and the kids had money to do things – that was what was important. Now I know, you can just go for a bike ride with the kids and they are happy. You don’t have to take them to everything they want.”
Rachael is grateful for what she has and when she is happy, her family is happy.
Do you need help right now?
Helpline services are available right now in New Zealand that offer support, information and help for you and your parents, family, whānau and friends.
All the services listed here are available 24 hours a day, seven days a week unless otherwise specified.
National helplines
Need to talk? Free call or text 1737 any time for support from a trained counsellor.
Lifeline – 0800 543 354 (0800 LIFELINE) or free text 4357 (HELP).
Suicide Crisis Helpline – 0508 828 865 (0508 TAUTOKO).
Healthline – 0800 611 116
Samaritans – 0800 726 666