Less than two months since its official launch, innovative debt consolidation social enterprise, Money Sweetspot, has already provided nearly $3 million in loans to New Zealanders grappling with unmanageable debt.
CEO Sasha Lockley says, “The speed at which we’ve reached this milestone shows us this isn’t just a problem at the edge of society. We see everyday people in good jobs losing control of debt due to life events like illness, relationship breakdowns, or small, unexpected expenses that pile up. We’re here to help reverse that debt spiral and support New Zealanders to regain control of their finances.”
Money Sweetspot takes a people-first approach to debt consolidation, providing customers with a single, manageable payment. In addition, it provides free access to valuable financial education resources.
“Engaging with these resources allows our customers to earn Sweetspot points, which can be redeemed for additional loan reductions or savings, helping them reach their goals faster,” says Lockley.
Before their Money Sweetspot financial reset, the majority of customers faced rates of between 25 and 50 percent, which collectively could have added up to approximately $900,000 in additional interest over the life of their loans.
One case that illustrates the impact of Money Sweetspot’s services involves a family of six who recently moved to Auckland from the Far North to take up education opportunities for their children. With the recent rise in inflation and the higher cost of living in Auckland, they found themselves struggling to manage their debts and household expenses. They needed a financial buffer to get on top of their bills, settle their debts, and establish their new life in Auckland.
Money Sweetspot stepped in with a financial reset loan of $42,700 at a reduced interest rate. This cut their current debt repayments from $1,410 to $470 monthly, freeing up $940 per month. This extra breathing space enables the family to live more comfortably, manage their finances effectively, and settle into their new lives in Auckland.
The lending capital behind the initiative is provided by the Bank of New Zealand, and BNZ CEO Dan Huggins, says, “We’re proud to back an organisation that measures success by the lives they’ve changed. The rapid uptake of their services demonstrates the crucial role they play in empowering families and individuals to take control of their finances and build a better future.
“Our support for Money Sweetspot is part of our broader commitment to enhancing the social, cultural, and financial wellbeing of New Zealanders. With our goal to deliver $50 million in low or no-interest lending by 2024, we’re actively supporting a more inclusive and sustainable financial future.”
For more information visit https://www.moneysweetspot.co.nz/