It is unbelievably easy to fall into the trap of credit and loans today. Telesales officers ringing up your phone offering credit cards and quick loans and brands offering easy monthly installment (EMI) options for purchasing high-end products doesn’t help. Neither does the fact that there is a monumental lack of financial management awareness and knowledge among the population. On top of that, the government’s desire to boost inflation led to policies that promoted debt growth. As a result, New Zealand currently has hundreds of thousands of people struggling to pay off loans.

If you are part of that unlucky group, don’t lose hope. There’s a way out of every mess; to find your way out of debt, you need rationalization and discipline. If you’re up for the challenge, read this guide which lays out a three-step process by which you can get out of debt!

1. Self-Assessment: How Much Do I Owe?

The first step you need to take is to assess your current situation by determining exactly how much you owe. This is essential as you cannot effectively tackle your debt problem without knowing the liabilities in your head. Start simply by checking your credit record online to get a brief idea of your official loans. If you need clarity regarding any loan/transaction, check in with the relevant financial institution. An inside tip for you: Consider opting for a debt consolidation loan. It is a great option nowadays for those looking to get rid of the hassle of dealing with multiple creditors, with the benefit of having only one payment and one due date. If you’re looking for options, check out Nectar’s debt consolidation loans NZ the top personal loan options in New Zealand. With their services, you can repay your other debts and increase your chances of getting a personal loan as well. That’s smart money management for you! 

Next, list all your debts (including potential ones that may transpire due to litigation). This should include all unofficial debts and loans taken from family, friends, acquaintances, and private lenders who do not report loans to authorities.

2. Repayment Planning: What do I Need to Pay off First, and how do I do it?

The next step in getting a personal loan is to plan out your repayment schedule. This involves thinking about your debts and determining which ones should take priority. One important thing to consider is which debts have the highest interest rates. These  are typically credit card debts or student loans, which can accumulate over time if you aren’t careful. For any company that is struggling with debt or facing insolvency, the first to call is a licensed insolvency practitioner, especially when the First Gazette Notice For Compulsory Strike-Off. They can act as professional mediators throughout the proceedings, often helping creditors feel confident that financial issues are being resolved.

Another essential factor to consider is whether the loan is secured or unsecured. A secured loan, such as a mortgage or car loan, will typically have lower interest rates. On the other hand, an unsecured loan may be more difficult to get approved for, but the interest rates tend to be higher. 

Once you have a plan, you can start making monthly payments toward your debts. This might involve prioritizing certain loans over others and working with a financial advisor to devise a repayment schedule that works for you. Overall, repayment planning is being realistic about your debts and finding a strategy that works for you. With careful planning and discipline, you can get out of debt and regain control of your finances.

3. Discipline and Consistency: What Changes should I Make?

Debt is like quicksand. The longer you stay put, the deeper you sink. If you’ve taken the step and are willing to find your way out, know that it isn’t going to be possible without changes on your part. You would have to start living controlled and consciously, cutting out all and any unnecessary expenses. Skip that luxury gift for your brother and get something thoughtful, like his favorite book. Start making food at home instead of getting takeout every day. Maybe even rethink that Amazon Prime Subscription; after all, how much do you actually use it? Any expense which you feel you can do without should be eliminated. 

Additionally, the repayment plan you have made is now your holy grail. Do not, under any circumstances, deviate from it. Your monthly budget must fit all your expenses except for emergency cases. No dinner out with old friends is worth the financial strain it would put on your pocket, and neither is that new watch you’ve had your eye on that just went on sale. Until and unless you consciously decide to stick to your planned budget with discipline, you will remain in this state of debt. 


At present, the entire country is dealing with debt. As per reports, over 300,000 NZ citizens owe more than they own. At this point, dedication and diligence are required on your part, which will solely be based on your will to become debt-free. If you are willing to stretch yourself a little tight for a short time, you’ll bear the fruits of that patience later in life. Just follow the above steps, and before you know it, you’ll be able to find your way out of this financial mess.

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