Napier CAB can help with budgeting advice as living costs rise

CAB volunteer Bryce helping a client.

Although the cost-of-living payments have been a help, there are still many people struggling to put food on the table for themselves and their families. New Zealand food inflation is at its highest for 13 years and vegetables and dairy are driving the prices. Combine this with landlords raising rents and interest on mortgages increasing, many people are struggling to make ends meet.

The Citizens Advice Bureau (CAB) in Napier has clients asking for advice and assistance in managing their living costs. It is so easy to get into debt these days but there is help there. The sorted website (https://sorted.org.nz/) has advice to help you avoid getting into debt. Debt is out of control when you are unable to meet your debt repayments and pay your day-to-day expenses (for example, rent or mortgage payment, groceries, power, transport).

Some people get desperate and buy things on credit. Fortunately, lenders and credit providers have to follow strict guidelines to avoid starting a loan or other credit contract that a borrower cannot comfortably repay. When you have debt, it is important to make your repayments on time. If you miss a repayment or do not repay the amount agreed to in your credit contract, the amount of your debt will increase. If you are already in debt, CAB can give you a helping hand with finding a budget adviser. They can also offer tips for credit card debt. Or look at the CAB website, www.cab.org.nz and type in the following 'How do I keep debts from getting out of control'.

If you owe money on your credit card, it is best to pay more than the minimum repayment amount. Ideally, pay off the whole amount each month. If you pay less than the amount you owe, the credit provider will charge you interest on the rest and the rates can be high.

If you have tax to pay and you are struggling with the payments, speak with IRD to make some arrangement as soon as possible. Late payments can cost you in extra fees, interest and late payment penalty charges. There is lots of information on their website https://www.ird.govt.nz/contactus/debt-refunds. You can also approach Napier CAB for friendly advice and help.

Making a budget is always a good idea to keep track of your financial position. This can be a list of your total income and all your expenses (including all debt repayments). You can download a budget worksheet for free from the Money Talks website or the Work and Income website or use the online budgeting tool on the Sorted website. Volunteers at CAB in Napier can assist in downloading, printing these forms, and helping to fill them out with you.

A budget advisory service can help you put a budget together and work out ways for you to reduce your spending or increase your income. There are several non-profit organisations that can help you with budgeting advice. You can make a face-to-face appointment. The Money Talks website can help you find a local financial mentor. Money Talks can also provide advice by email, text, live chat and phone (0800 345 123). Christians Against Poverty (CAP) is another website that offers free advice.

If you cannot find one on your own, CAB Napier can assist. CAB provides free, confidential, independent information and advice to anyone. CAB helps you know your rights and how to access services you need.

■ Anyone needing advice can contact the Napier Citizens Advice Bureau in Bower House, Bower Street, Monday to Friday 9am-4pm. Call us on 06 835 9664, 0800 367 222 or email napier@cab.org.nz. Confidentiality is assured.