Talking about Christmas is a good way to avoid debt. Photo / File
Talking about Christmas is a good way to avoid debt. Photo / File
Some people seeking budget help have more than 15 Buy Now Pay Later purchases running at once and are facing hundreds of dollars in repayments every week.
The news comes in the lead-up to Christmas and Bay Financial Mentors manager Shirley McCombe said she estimates this year it would deliver 30 per cent more sessions this year than before Covid.
This was not necessarily due to the impact of Covid, but rather the impact of inflation and supply issues on accommodation, food, and fuel, she said.
''It has been tough for everyone, costs are increasing across the board and individuals, families and whanau are struggling.''
She said there had also been an emerging trend when it came to Buy Now Pay Later.
Bay Financial Mentors manager Shirley McCombe. Photo / Supplied
''We see clients commit to more and more Buy Now Pay Later purchases – sometimes 15 plus. Suddenly they are facing hundreds of dollars of repayments per week, usually just as their children are returning to school.''
McCombe said in preparation for Christmas she would like to see people have a plan and stick to it.
''We all want to spoil the people we love but if the impact is that we can not pay our essential costs, we are putting our family/whanau at risk. Christmas can be so stressful for everyone, especially when everything is so expensive.''
''Talk to your family, they are probably feeling just the same, cut out presents to the adults and make the meal potluck. You'll reduce the cost and be much less stressed.''
Rotorua Budget Advisory Services manager Pakanui Tuhura. Photo / Andrew Warner
Rotorua Budget Advisory Service manager Pakanui Tuhura said in his view the biggest trap around Christmas was people bowing to the pressure and expectations of people around them.
‘’Do the best you can on what you can afford. Plan for a family/friends-orientated Christmas and enjoy the things Christmas was about before it became strongly commercialised.’’
''Be firm and do and buy what you want for your own reasons, not because of some trend driven by others' reasons.''
He said the key was to plan and budget.
''Nothing is better than a well-planned spontaneous Christmas.''
He agreed Buy Now Pay Later could be a trap if you don't follow the rules and limit the number of debts incurred.
''A lot of people on lower to middle incomes have not coped with the increasing costs of living. They have minimised their spending and in some cases given up on the idea of trying to save for the future.''
‘’Their only real recourse is now to increase their income somehow. They live day to day but know that their budget can’t be sustained in the long term.’’
