Consolidating hope

NZCU News

Consolidating hope

It’s all too easy to rack up debt before realising the consequences. Going to high interest loan places as a quick fix will leave you worse off than before as the true cost of charges and interest rates in fine print hits you.

NZCU Employees can help consolidate your debt with a personal loan at a very low interest rate, which Maria was able to achieve

When 20-year-old Maria graduated from university after years of scrimping by on a student loan and part-time casual work, she decided to celebrate with friends and family.

“I felt I deserved it, not only for myself, but more for all of those who supported me along the way,” she recalls.

Initially, Maria thought that graduating would lead to a full-time job sooner rather than later. She worked as an intern for free, then as a research aid, but a stagnant job market meant there was plenty of competition to contend with.

“I honestly didn’t realise how tough it would be.”

What wasn’t as tough, however, was Maria’s ability to borrow, which she needed to do without a job.

“My parents were supportive, but being part of a big family in a small house, I didn’t want to be a burden. Because I graduated, I was eligible for a loan and thought I’d be able to pay it off easily.”

Initially, it was. Maria was able to access a $3000 overdraft from a bank as part of a graduate package. It seemed so easy compared to trying to gain full-time employment.

But tragedy struck when her father suffered a work-related injury.  Although covered by ACC, Maria says the accident had a debilitating effect on her and her family.

“My father’s a strong worker and very proud, so seeing him struggling was hard for all of us,” she says.

Despite ACC’s coverage, Maria and her family were met with increasing transport costs getting their father to hospital, which included the cost of parking. She prided herself in being careful with her money, but without a fulltime job and a fully employed father, Maria knew their hard-earned money was dwindling. She felt she had little option but to take out more loans.

“The money was easy to get at the start, but when our family circumstances changed, it was hard to maintain payments.”

With banks offering starting packages for tertiary students with zero-interest overdrafts and credit cards, Maria admits it’s hard to ignore the temptation. Soon enough, she had multiple debt to various places she was juggling to pay back.

“I also got hooked into credit cards, which was one of my worst mistakes,” she says.

“They’ll drag you in with a small interest rate offer, but once you start spending, the rates ramp up very quickly.”

Eventually Maria found a job. But she found her weekly pay would be almost completely gone, to the different banks and creditors, leaving very little to herself and to save.

“It looked like I was never going to pay off my debts or save. It felt like I was going to be in debt for ever.”

She even started looking at more payday loan places as she began to fall behind on payments, having to put some on hold one week and vice versa the next in order to pay the bills.

It was becoming increasingly more difficult to keep track of her finances. Not knowing how she was going pay her debt left a heavy burden on her she couldn’t seem to shake.

Until she came across NZCU Employees.

“There was a Facebook ad about debt consolidation at NZCU Employees,” Maria recalls.

“I was a bit hesitant at first and didn’t think they would be any different to loan places offering consolidation, but the more I read about them online, the more I knew it couldn’t hurt to apply.” Maria was contacted by NZCU Employees to discuss her financial situation.

The team at NZCU Employees were very helpful, particularly in consolidating her loans.

“The lending consultant put me right at ease,” Maria recalls.

“She was firm, but understanding of my situation and really helped me out. The repayments seem so much more affordable than having it in various places, which left me with very little money left over.

“I now have much more left after my payment has gone out. I’m able to pay bills, help my family out and have some money for myself and, most importantly, enough to save.”

Her greatest learning experience was understanding the difference between good interest deals and bad. Maria is more confident a debt-free life is within sight.

“I’ve finally understood how compound savings can lead to greater wealth and generating interest rates help support a positive financial outcome,” she says.

“It has been a real eye opener for me, thanks to NZCU Employees.”

If you would like to look at consolidating your debt with an NZCU Employees Personal Loan click here.