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What you can do if you’re experiencing financial hardship

Struggling to pay your bills and afford the basics in life is a tough place to be. Here are some ways to help reduce financial stress.

3 minute read

Financial stress can put a big strain on your relationships and emotional wellbeing. If you’re in this situation, knowing there’s help available can make a real difference.

Things you can try if you can’t pay the bills

The first thing to do is to review where you are spending your money to understand if there are areas where you can reduce spending.  If you don't have a budget then now is definitely the time to create one. If you would like support with your spending or creating a budget, there are some great self-help tools available at Sorted. If you prefer to speak to someone you might want to consider working with a financial mentor at Money Talks. Financial mentors offer free, independent and confidential support with budgets and managing your debt. 

Talk to your utility providers (such as your power company) and your bank/s or other finance companies you owe money to.  They may be able to offer you flexibility with payments through challenging times.

There are also a range of financial support options provided by the government. Check what financial assistance you may qualify for from work and income.

If you're struggling with your loan repayments

If you’re a BNZ customer and you're having difficulty managing your personal lending repayments (e.g. home loan, overdraft, personal loan, or credit card), you may be able to apply for financial hardship support.

If you've been paying more than the minimum required payment on your home loan, you could also consider reducing your repayments to that minimum level.¹

If you've lost your job or are unable to work due to sickness or injury and you have income protection insurance or payment protection insurance, you may be able to make a claim.

You could also consider debt consolidation if you have multiple loan repayments with different banks and finance companies. This may involve refinancing or consolidating any higher interest debt you may have (e.g. credit cards, personal loans, or overdrafts) onto a loan with a lower interest rate and potentially over a longer term which could reduce your repayments. Some of the options available could result in you paying more interest over the term of the loan, so you'd need to consider your options carefully, and get support from a financial mentor if needed.

Alternative lending options 

BNZ has partnered with organisations that can provide additional help to New Zealanders.

Good Loans is a community finance programme offering no-interest loans to families on limited income. These loans are provided on a not-for-profit basis and can be used for things like paying for unexpected medical expenses, or getting your car fixed so you can get to work. In some instances they can also be used to consolidate problem debt.  Find out more at goodloans.org.nz

Money Sweetspot is a finance company supported by charities.  They help customers combine and reduce debt, by providing debt consolidation loans at interest rates that may be lower than what they’re currently paying, and rewarding customers for learning about money and paying on time.  Find out more at moneysweetspot.co.nz

Using your KiwiSaver for hardship

If you’ve already tried all other types of financial support, and you’re suffering (or likely to suffer) significant financial hardship, then you may be able to withdraw some of your KiwiSaver account balance. Read more about KiwiSaver and financial hardship.

Managing your emotional and mental wellbeing

Getting support for your financial problems will make a huge difference. But just as importantly, there’s plenty of support and information for your emotional and mental wellbeing too.

However tough things might seem right now, there is help available if you need it. The most important thing is reaching out and asking for it.

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¹Available for most BNZ home loans. Repayments must be enough to repay your loan by your loan's end date. You can't reduce your repayments below the minimum amount payable on your home loan. Early repayment charges may apply.

Credit, lending, and other criteria, terms and fees apply depending on the type of help required.

This article is solely for information purposes. It’s not financial or other professional advice. For help, please contact BNZ or your professional adviser. No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this article.

References to third party websites are provided for your convenience only. BNZ accepts no responsibility for the availability or content of such websites.