Working families increasingly seeking help as debt climbs.
By Frankie Webb, Horowhenua Chronicle
Local people seeking help through Levin Budget Service are carrying more than $11 million in combined debt as demand for financial mentoring surges to record levels in the first last months of this year.
Since January, the service has conducted 204 one-on-one mentoring sessions, nearly double the 109 sessions recorded over the same period last year. Chair Bernard Long said the spike reflects mounting pressure from rising living costs and increasingly accessible but often unaffordable lending.
Current client figures show total indebtedness of $11.2m, with an additional $222,000-plus in arrears. Most debt is owed to bankes, finance companies and consumer lenders, while about $1.4m is owed to government agencies, primarily through Ministry of Social Development loands and Department of Justice obligations.
Long said the profile of those seeking help has shifted significantly.
“It used to be people living hand to mouth, often out of work, mostly in their early 30s to 40s. We would virtually never see two-income families. That has changed,” he said.
Of the service’s more than 200 active clients, over 50 per cent are now in paid employment, whether full-time, part-time or casual roles. Many are older than previously seen, with a strong concentration in the 46 to 65 age group. Ethnically, clients are split at roughly 50 per cent Pākehā and 50 per cent Māori.
“We seldom see Pasifika clients seeking help," Long said. "They have strong family principles and generally look after their own."
The most common pressure point is the day-to-day cost of living.
"For most clients it's the basics - food, power, rent - all going up. Alongside that is lending which is easy to access but very quickly hard to repay. People can get credit quickly, but the long-term cost catches them out.”
The Levin Budget Service is government funded and part of a national network of budgeting advice providers. The local office employs paid financial mentors covering, Levin, Kāpiti and Ōtaki daily, with Foxton served one day each week and Shannon one day a fortnight.
“We were fortunate when government funding was reallocated in 2024. It went in our favour as the largest provider with strong governance in this area," Long said.
From July 2025 to January 2026, Levin mentors conducted 795 one-on-one sessions, along with group education sessions, and the workload continues to grow. Long described the group education sessions as preventative rather than crisis response.
“We are the fence at the top of the cliff, not the ambulance at the bottom. By then it’s often too late," he said.
While clients can be referred by agencies including WINZ or contact the service themselves, Long is concerned referral numbers remains low.
“Only about 13 per cent of our clients are referred by WINZ. I’m not sure why that is," he said. "We have refreshed our image and are building more public awareness so people understand who we are and what we offer.”
Women account for 69 per cent of clients.
"Women are often managing the daily household costs, especially where children are involved," Long said. “Men can feel embarrassed or inadequate and may delay seeking help, which often makes the situation worse.”
Long’s message is simple. Early help makes a real difference.
"No one should struggle alone. The earlier people come to us, the more options we have to help them regain control."
Debt, support and services available
Appointments can be made by calling 0800 368 6924. Services are available in Levin and Paraparaumu daily from 9am to 3:30pm.
The Paraparaumu office is at Kāpiti Impact Hub, 6 Tongariro Street.
Ōtaki sessions are held at the CAB offices, 65A Main Street, daily from 10am to 2pm.
Foxton sessions are on Wednesdays from 10am to 2pm at Heartland Services, Ladys Mile, and Shannon is fortnightly on Wednesdays from 10am to 2pm at the old Post Office.
