Simplicity KiwiSaver and Debtfix have launched a pilot programme for KiwiSaver members who want to withdraw funds when they are experiencing financial hardship.

Now, people applying to Simplicity to withdraw KiwiSaver funds will be referred to Debtfix, New Zealand’s first not-for-profit debt solution provider. The holistic service supports people beyond the hardship application and looks for solutions that may mean people don’t need to draw down on KiwiSaver funds.

When Hon Aupito William Sio, Minister for Pacific Peoples and Courts visited the Crew at Debtfix it was acknowledged Pasifika communities need more knowledge about money and debt.

On Friday 27 May, Sio met with Debtfix co-founder and director, Christine Liggins, to discuss two specific actions that could improve outcomes for people overwhelmed by debt.

“We would like a system that stops Pacific people from relying on predatory lenders who take advantage of them in their vulnerable situations when they need money to support family,” Liggins says.

The Crew at Debtfix were pleased to see the Government’s Budget 2022 recognised that people earning less than $70k are making ends meet on a low income.

The announced $350 cost of living package will give New Zealand’s lower earners a buffer while they struggle to pay for everyday living, resorting to higher interest credit to cover household expenses.

Debtfix director, Christine Liggins, says she’s surprised the Wellbeing Budget 2022 didn’t give the $350 to beneficiaries, too.

The gruesome endings for players in Netflix’s hit show Squid Game, may not be exactly what happens to people with money problems. Thank goodness.

However, the violent South Korean drama does reflect the real-life battles faced by those who desperately want to get out of debt.