A Porirua mother of four has had nearly $14,000 in debt cleared after receiving support from Porirua Whānau Centre.
The woman had been facing ongoing pressure from debt collectors after a vehicle loan grew to more than $30,000, including interest and add-on insurance products attached to the finance agreement.
The vehicle was purchased through Go Car Finance, which was withdrawn from the New Zealand market by parent company Solvar in 2024.
Within five months, the car was repossessed and later sold for about $3,000, leaving a significant outstanding balance.
Porirua Whānau Centre budgeting facilitator Christine worked with the woman as part of ongoing budgeting support and later advocated for a hardship write-off.
“She was very overwhelmed with relief,” Christine said after informing the woman the debts had been cleared.
Christine contacted the debt management company to request home visits from debt collectors stop before applying for a hardship write-off based on the family’s financial position.
At the time, the woman’s weekly expenses were higher than her income, with further increases expected in rent and power costs.
Support from the Whānau Centre, including food assistance, was also provided while the case was being reviewed.
The debt management company later agreed to clear three debts totalling $13,928.34.
Christine said the case raised wider concerns about lending practices and affordability checks.
“They’re supposed to do an affordability assessment, but they’re passing people who can’t afford it,” she said.