Money Sweetspot, the social enterprise disrupting predatory lending, backed by Bank of New Zealand (BNZ), is forecast to deliver $7 in social good for Aotearoa for every dollar invested, according to a recent independent report by ImpactLab.
In recognition of its positive impact, BNZ today announced it will double the lending capital it provides Money Sweetspot to $10 million, up from $5 million.
“We deeply appreciate BNZ’s commitment to our kaupapa,” says CEO Sasha Lockley. “This extra support means we can help more New Zealanders – especially as people continue to face cost of living pressures.
“Before partnering with us, many of our customers were battling interest rates of between 25 and 50 percent. This can mean it’s difficult to make progress or get through unexpected financial shocks. Our financial reset loans help break that cycle and set them on a sustainable path out of debt and on with their lives.”
“As people gain control over their debts, it’s not just their own lives that change for the better. As ImpactLab’s findings show, the ripple effects are seen in improved mental health, and less dependence on emergency benefits, supporting healthier, safer, more resilient communities,” she says.
Since its official launch four months ago, Money Sweetspot has made rapid progress, providing nearly $5 million in debt consolidation loans to hundreds of New Zealanders. Its debt consolidation offers customers a financial reset by converting multiple high-interest loans into a single, manageable payment. In addition, its customers can earn Sweetspot Points which can be redeemed as additional payments off their loan or kept as savings to help with future expenses.
BNZ CEO Dan Huggins says, “We’re pleased to be able to support Money Sweetspot to expand their services to give more Kiwis a helping hand when they need it. This partnership reflects our focus on growing the long-term social, cultural, and financial wellbeing of all New Zealanders. We’ve committed to delivering $50 million in low or no-interest loans by 2024, and supporting Money Sweetspot is one way we are achieving this goal.”
A recent example of the positive impact Money Sweetspot is having involves a couple wanting to purchase their first home after raising five children. With over $47,000 in high interest debt, the couple undertook a financial reset with Money Sweetspot. By consolidating their debts, they were able to more than halve their average interest rate, saving $735 per month in repayments and significantly accelerating their journey towards homeownership and being debt free.
For more information, visit https://www.moneysweetspot.co.nz/