Breaking the silence on bills can stop money worries from spiralling out of control.
Presbyterian Support Otago provides a free financial mentor service for people facing money challenges across the region.
The fully funded Ministry of Social Development initiative helps clients navigate rising living costs and the pitfalls of buy now, pay later schemes.
Financial mentor Michael Allan said the initial step was frequently the most difficult.
"My big thing is communication."
People are often too scared to contact their bank, landlord or power provider when they fall into arrears.
However, reputable organisations usually have hardship processes and are willing to negotiate reduced payments.
Talking to companies about owing money could be daunting but it was important to try.
"If you put yourself in the position of, say, the landlord, for example, would you rather have somebody saying, ‘hey, I can’t afford $300 this week, can I give you $50 and I’ll pay more over the next week as well’?" Mr Allen said.
"You will go, OK, I know what’s happening in your world right now, that is pretty bad for you, but I know and understand and I can make that work.
"If you just don’t pay your rent for a few weeks, the landlord goes, ‘what’s happening? I’m going to work on a process of getting you out of here’."
Mentors can assist individuals with listening to issues, creating budgets and can even help advocate on their behalf with government agencies or utility providers.
Connecting with lending organisations when facing adversity was crucial.
"Generally, if you engage and have a conversation, mostly they will help you out."
He advised people to avoid third-tier lenders offering quick loans online, as these often have hidden costs and rigid terms.
"They are the ones that won’t negotiate on anything — ‘here are the terms that are very clear, you missed a payment, that is the fee you have to pay’."
Mentors see clients ranging from people in their early 20s to their mid-60s, as well as refugee families who can sometimes experience severe culture shock over living costs.
The mentors came from a range of backgrounds.
"Our workloads are wide and varied, but that one-on-one stuff is what I find the most rewarding, especially with like the early 20-year-olds."
He encouraged people to connect "before it has got too bad".
"Coming and having that conversation, which admittedly is really hard sometimes, like going and asking strangers for help."
— For details, visit psotago.org.nz and search for ‘financial mentors’.
