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Christine Liggins warns of tough times ahead.
A Mahurangi-based debt expert has lauded government moves to bolster funding for debt solution services in the wake of Covid-19.
Christine Liggins, co-founder of debt resolution service Debtfix, says so far she has not seen a significant uptick in people suffering difficulties with debt due to Covid-19, but this is unlikely to last.
She says the full financial implications of Covid-19 have yet to be seen because of the global nature of the pandemic and government support.
“We felt the situation was so unprecedented that creditors should be helping out, rather than us putting together a debt solution for clients,” she said.
“On the whole, creditors did come to the party and help clients and that was good.”
But Ms Liggins says things will get tougher following the ending of the wage subsidy, which is due to expire in September, and where further job losses are expected.
In anticipation of hard time ahead, the Government announced last month a $4.3 million funding boost over two years for the expansion of existing specialist debt services.
Ms Liggins says although budgeting services have received government funding for years, it is the first time debt specialists are being recognised for the impact they have on everyday New Zealanders.
“It will change the lives of many people who are at a loss when it comes to repaying their loans,” Ms Liggins says.
The funding boost for debt services comes in addition to an extra $35 million of government funding for budgeting services announced at the end of May.
Commerce and Consumer Affairs Minister Kris Faafoi says by ensuring debt and budgeting services are in place, the Government is removing opportunities for loan sharks to take advantage of the vulnerable.
“This funding will help to continue the vital flow of payments to creditors while sheltering indebted people and their whanau from the financial, health and social impacts of overwhelming debt,” he said.
Meanwhile, Ms Liggins has become New Zealand’s first insolvency practitioner specialising solely in the field of personal insolvency and accredited by the Restructuring, Insolvency & Turnaround Association of New Zealand (RITANZ).
As an accredited insolvency practitioner, Mrs Liggins is recognised as having appropriate experience and is subject to a code of ethics, rules and standards.
In 2018, Ms Liggins launched Debtfix with corporate insolvency expert Shaun Adams. The service specialises in developing debt repayment programmes and advocates for people trapped by spiralling interest payments and penalties. Services are mostly provided for free.
Currently, Debtfix is progressing towards become a charitable trust. Ms Liggins says this would clearly communicate that Debtifx resolves debt problems for its clients’ benefit and not the money.
