on Oct 05, 20

How kindness is freeing Kiwis from the debt-poverty cycle

With the increased levels of economic pressures, job losses, and increased costs due to the Covid-19 pandemic, it is more crucial than ever that communities receive additional financial support.

One of The Good Registry’s newest charity partners, Ngā Tāngata Microfinance, is providing this support, offering ethical, interest free loans to low income earners. They are committed to preventing and alleviating debt, as research shows that unsupported, high interest debt is a major contributor to poverty in New Zealand.

Ngā Tāngata Microfinance is not a bank, but a not-for-profit social service. They provide safe and affordable finance options, helping Aotearoa to become an equitable society with social and financial inclusion. Ngā Tāngata Microfinance has two loan products, one being a debt-relief loan up to $3,000, and the other an asset-building loan up to $2,000. Their loans are small and fair, with no hidden costs or nasty surprises!

As loans are paid off, the money recycles back and is used to make further loans to others in the community to help them get ahead.

The capital for loans is provided by Kiwibank and donations through The Good Registry will help to cover the costs of managing the loans — helping to support the people who need them.

This is what some of Ngā Tāngata Microfinance’s clients have said after receiving their support:

“I no longer feel overwhelmed when I look at financial matters. That motivation and sense of empowerment has never happened to me before.”

“I had been really stressed and hadn’t been getting anywhere. It was like chasing a rat.”

“You know, with debt it gets to that point you can never get rid of it. So thank you for a hand up out of that trap.”

“We are gonna have quality time with my mokopuna, that’s what I want. I’m not just working to pay the bills anymore.”

Debt is a major cause of stress for low income Kiwi families. By working to alleviate this stress, Ngā Tāngata Microfinance’s mahi is having positive impacts on mental health and general wellbeing, thereby increasing community involvement and contribution.

The work that Ngā Tāngata Microfinance does is increasingly important due to the financial hardship caused by Covid-19. In a survey by The Commission for Financial Capacity, 14 percent of respondents that reported facing financial difficulty said that they planned to take out new loans to cover expenses. Due to these respondents being in a poor financial situation, their loans would likely be from third-tier lenders at high interest rates.

In order for Kiwis in financial strife to be able to loan from Ngā Tāngata Microfinance rather than third-tier lenders, Ngā Tāngata Microfinance needs adequate financial support.

You can contribute by donating to Ngā Tāngata Microfinance through our Good Gift Cards, Registries and #KindnessFromHome page.

  • A $10 donation can support Community Engagement workers with resources and educational materials to connect with whanau in the community
  • A $20 donation can assist with onboarding financial mentors across Aotearoa

 

If you'd like to support them right now you could:  

- By Tilly van Eeden

 

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