Debtfix Review - The Free Debt Assistance Service Available New Zealand-Wide
Our review explains Debtfix and how they support New Zealanders to get on top of problem debt and become financially resilient.
Updated 8 November 2023
Summary:
To help explain Debtfix further, our review covers the following:
Be aware: We have not published a list of frequently asked questions. We suggest using Debtfix's comprehensive list here.
Related Guides:
Summary:
- Debt is an economic and social problem. Unfortunately, New Zealand's personal debt levels are out of control, made worse by spiralling living costs, the effects of Covid19 and traumatic weather events.
- People are taking out more debt or resorting to high-cost, high-risk ways of paying for basics like groceries. This is making the debt burden worse. Our research team receives emails about the cost of living near-daily.
- Debt contributes to family and relationship breakups, physical health problems and poor mental health. And the problem is not going away - debt is causing more debt and is a major contributor to poverty.
- While many organisations are trying to tackle New Zealand's debt issues, there's one big problem. The people helped often need more than one service provider's advice and support. People in need don't know who to go to first, and they often repeat their stories to numerous organisations – it's demoralising, time-consuming and stressful.
- Debtfix (Debt Relief Foundation) is a New Zealand charity assisting people with complex personal debt problems. Debtfix collaborates with creditors, banks, finance companies, courts, government departments, local budget services, and other organisations on behalf of clients with significant and/or complex personal debt.
- This connected approach means Debtfix clients only have to tell their story once, reducing the burden, complexity and stress of dealing with debt while also getting quick and easy access to relevant support services.
To help explain Debtfix further, our review covers the following:
- What is Debtfix and How Does it Work?
- Pros, Cons and Must-Know Facts About the Debtfix Approach
- Client Feedback about Debtfix
Be aware: We have not published a list of frequently asked questions. We suggest using Debtfix's comprehensive list here.
Related Guides:
MoneyHub Founder Christopher Walsh shares his comments about Debtfix:
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"Debtfix stands out as a unique and valuable resource for New Zealanders struggling with debt. Their one-stop-shop approach provides clients with a streamlined and integrated experience, reducing the stress and complexity of dealing with multiple service providers".
"I have known about Debtfix for a few years, and they are talked of fondly among experts and advocates in New Zealand". "Their services have helped countless individuals regain control of their finances and improve their overall well-being by offering personalised advice and solutions". "While some may be hesitant to share detailed financial information, it's important to remember that Debtfix operates with strict confidentiality and security measures. However, their success stories and client feedback speak to the effectiveness of their approach, making them a trusted resource for those in need". "If you're facing debt-related challenges and seeking a supportive, non-judgmental organisation to help you navigate your financial situation, Debtfix may be the solution you've been looking for. Their commitment to empowering individuals to become financially resilient is evident in their client testimonials and the wide range of services they provide". |
Christopher Walsh
MoneyHub Founder |
What is Debtfix and How Does it Work?
Debtfix was acquired by the Debt Relief Foundation (DRF) Charitable Trust on 1 August 2022. DRF has an independent board of trustees providing governance and guardianship of Debtfix. You can read more about the team here.
As a charity, DRF generates funding from grants, industry partnerships and donations to operate Debtfix. The CEO is Christine Liggins, a co-founder of Debtfix (established in 2018). Christine is a debt repayment order supervisor appointed by the Official Assignee and a trustee of creditors' proposals working with the courts. She is also a tutor, holds educational seminars and has written various financial literacy programs. In addition, she is a RITANZ Insolvency Practitioner licensed by the New Zealand Institute of Chartered Accountants.
How Debtfix Works
To help explain how Debtfix helps people, we list the typical process for new clients below:
1) Clients contact Debtfix by phone or email: To make this service widely accessible, there are no in-person appointments as the service is offered remotely.
2) Comprehensive information is gathered, including:
As a charity, DRF generates funding from grants, industry partnerships and donations to operate Debtfix. The CEO is Christine Liggins, a co-founder of Debtfix (established in 2018). Christine is a debt repayment order supervisor appointed by the Official Assignee and a trustee of creditors' proposals working with the courts. She is also a tutor, holds educational seminars and has written various financial literacy programs. In addition, she is a RITANZ Insolvency Practitioner licensed by the New Zealand Institute of Chartered Accountants.
How Debtfix Works
To help explain how Debtfix helps people, we list the typical process for new clients below:
1) Clients contact Debtfix by phone or email: To make this service widely accessible, there are no in-person appointments as the service is offered remotely.
2) Comprehensive information is gathered, including:
- Relevant authorisation forms
- A detailed budget outlining household bills, other spending commitments, and income
- Details about assets owned and money owed.
- Anything else that is relevant to the current financial situation.
Debtfix Pros, Cons and Must-Know Facts
Debtfix is committed to providing a personalised approach that connects clients with government departments to get debts sorted. In addition, it is committed to providing fully integrated advice and offering a debt solution service to help make positive changes to any New Zealander approaching (or living in) a debt crisis.
However, Debtfix requires that a client's information be full and factual. Some people could be put off by having to divulge so much detail, but the reality is that without this, Debtfix can't provide the best possible solution for each client's situation. Everyone's situation is different, so everyone requires a different solution. However, our research team confirmed that Debtfix has full confidentiality and security to protect client details.
However, Debtfix requires that a client's information be full and factual. Some people could be put off by having to divulge so much detail, but the reality is that without this, Debtfix can't provide the best possible solution for each client's situation. Everyone's situation is different, so everyone requires a different solution. However, our research team confirmed that Debtfix has full confidentiality and security to protect client details.
- Debtfix is a one-stop-shop of debt advice and solutions and a single access point to essential support services.
- Their wrap-around service includes monitoring arrangements made with other service providers on clients' behalf to ensure everything keeps on track.
- Debtfix shares guidance and expertise with financial mentors, budget advisors and other service providers when they lack the required skills.
- Debtfix doesn't have eligibility criteria – it is the only New Zealand organisation that supports business owners or self-employed people with personal debt problems.
- Debtfix has developed a bespoke debt solution called Shipshape for New Zealanders with unsecured debt to multiple creditors, a bankruptcy alternative. Shipshape is only available to Debtfix clients.
- Debtfix advisory and support services are FREE.
- All Debtfix services are remote, providing greater anonymity and privacy for clients.
Client Feedback about Debtfix
To give you an idea of the difference Debtfix is making, we've shared some of their client feedback below. This has come from Debtfix, and while we cannot verify it, we believe it to be authentic.
"I'm so glad I found Debtfix online to help me with my debt. When I made contact, my finances were out of control from the messy ending of a relationship and court costs. Three years later, I'm debt free and looking forward to the road ahead."
"Thank you so much. You have no idea how appreciative I am of all your support and non-judgmental responses. I just read your emails and stayed in the car sobbing. It's so nice feeling like there is someone out there helping."
"I never thought I'd be in such a great financial position - I'll be able to retire without constantly worrying about my finances. I couldn't have achieved this success on my own. All because of Debtfix, I'm able to hold my head up. Thanks."
"I am so grateful to you and the team for everything. It was hard, but the time went so quickly, and I am glad that I stuck to my guns with everything because now I am completely debt free, and it also means that I can now start saving for the future I want. I know 100% that I wouldn't have been able to get this far without you and the team's help, but I know now that I will never want to put myself into a position of being in debt ever again! Again, so grateful to everyone at Debtfix and can't wait for a bright future."
"I'm so glad I found Debtfix online to help me with my debt. When I made contact, my finances were out of control from the messy ending of a relationship and court costs. Three years later, I'm debt free and looking forward to the road ahead."
"Thank you so much. You have no idea how appreciative I am of all your support and non-judgmental responses. I just read your emails and stayed in the car sobbing. It's so nice feeling like there is someone out there helping."
"I never thought I'd be in such a great financial position - I'll be able to retire without constantly worrying about my finances. I couldn't have achieved this success on my own. All because of Debtfix, I'm able to hold my head up. Thanks."
"I am so grateful to you and the team for everything. It was hard, but the time went so quickly, and I am glad that I stuck to my guns with everything because now I am completely debt free, and it also means that I can now start saving for the future I want. I know 100% that I wouldn't have been able to get this far without you and the team's help, but I know now that I will never want to put myself into a position of being in debt ever again! Again, so grateful to everyone at Debtfix and can't wait for a bright future."