Case Study: Client A (Grant) and an unaffordable loan

Grant came to our service, he had been referred by a car finance company to get a budget to support a Hardship application. Grant was unemployed and had previously been living in his car but meeting car loan payments. He was now in emergency type housing that took up most of his benefit, which meant that there was not enough left for the car payments. 

The request for hardship was rejected by the finance company and Grant was threatened with car repossession. We put a complaint into the disputes resolution scheme based on information we believed proved the car loan was unaffordable in the first place, which meant it was against the law.

We were successful, and the remedy was that all interest and fees were wiped from the debt, the car was not repossessed. Grant had paid so much over the years, he did not owe any more money, nor did he lose any through the repossession process. He was able to keep his car which is very important to him as his family lives out of town, and he was also then able to afford accommodation.

Client Impact Statement

"Auckland Central Budgeting services have been an amazing help in my life. I consulted with them when I was drowning in debt and struggling with my mental wellbeing.

My debt had spiraled out of control and I was at a loss. In my family money wasn't spoken about I was never given the tools to be successful at managing my money. I am 38 now and have been in debt of some kind since 18 years old. Due to my career success I was able to continue to increase my lending until it ballooned well beyond my means. I was facing bankruptcy and sunk into a deep depression.

Auckland Central Budgeting provided kind, empathetic, non-judgemental support. Speaking to them openly and honestly felt like a huge weight had been lifted. They took me through all of the options I had available and encouraged me to take the first steps.

I began to open up to friends about the reality of my financial situation, and eventually to family. 3 years later I am 4 weeks from being completely debt free, I have repaid approximately $100,000.00 and I never thought I would be in this position, let alone so quickly. The flow on effects of speaking to someone who was there to help and not judge helped to empower me to address my debt.

Through being radically honest I grew closer to loved ones I had kept at a distance. My friends also shared their own worries and we have all become more open and better at supporting each other.

Now that I will be debt free I am now looking to turn my efforts towards saving and investing. I have cemented great habits and the large chunk of each pay packet that would have gone to reducing debt can now go towards building a safety net for the future, maybe even my first home.

Thank you again to Auckland Central Budgeting Services, your support and advice was priceless."