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Money Sweetspot Review - Low-Cost Debt Consolidation Aiming to Help You Get Ahead

We review Money Sweetspot, the innovative low-cost lender transforming how New Zealanders tackle high-interest debt. We outline how Money Sweetspot's debt consolidation solutions focus on empowerment and education and explain how they compare to typical debt like high-interest credit cards. 
Updated 22 December 2024

Summary
  • Money Sweetspot launched in December 2022 and was established to support motivated New Zealanders in consolidating and repaying their debt while supporting and rewarding their customers to learn more about their finances. 
  • Money Sweetspot is a digital lender designed to help individuals consolidate their debts, particularly higher-cost debt like credit cards and personal loans, and achieve long-term financial freedom.
  • All Money Sweetspot loans are unsecured. This means you do not need to provide any assets as collateral.
  • MoneySweetspot does not lend on behalf of other lenders - it has its own money to lend and is supported by charities and social funding organisations, which means it doesn't have the singular focus on profit that some other, more traditional lenders have.
  • By specialising in debt consolidation solutions, Money Sweetspot enables clients to break free from the cycle of debt and set a clear path toward financial stability and wellbeing.

Our review covers:
Know This: We have no relationship with Money Sweetspot - our only goal is to help people get debt-free and move forward with their lives. Based on what we've seen since Money Sweetspot's launch, we believe they deliver on their promise to offer fair rates, transparent processes, and a helping hand towards long-term financial wellbeing.

Why Consider Money Sweetspot?
  • You can consolidate $2,500 to $40,000 of debt into one loan
  • Interest rates are likely to be significantly lower than your credit card
  • There are no account fees, no late fees (within a few days), and one regular payment to cover the total debt repayment
  • Get rewarded for building your confidence in managing your finances​

Our View: If you're ready to reset your debt, a financial reset from Money Sweetspot could be a helpful step forward. They believe in listening to your story, not just the numbers, and working with you to create a plan that fits your goals while you repay the debt and move on with your life.

MoneyHub Founder Christopher Walsh shares his views on Money Sweetspot and why this solution is overdue:

​"Long-term debt is a silent thief of opportunity, holding back countless New Zealanders from building real financial security. High-interest debts like credit cards, store cards and personal loans are especially damaging - everyday working New Zealanders are trapped in a cycle of repayments that barely dent the principal.

However, if you're serious about breaking free, you need a solution designed for one purpose: getting you out of debt, not keeping you in it. Money Sweetspot is designed to deliver that freedom. Their approach isn't about offering 'cheap debt' - it's about empowering you to take control of your finances, pay off what you owe, and move forward debt-free.

But here's the key: success requires your full commitment to repaying the loan and staying disciplined. This isn't a quick fix or a free pass to accumulate more debt - Money Sweetspot won't accept you if you're only looking for a cheap parking space for high-cost debt.

If you're ready to make a real change, I believe Money Sweetspot can help. Their focus on education, transparency, and rewarding good financial habits sets them apart in an industry where too many lenders profit from your struggles". 
Christopher Walsh
MoneyHub Founder

What is Money Sweetspot? How Does it Work?

Money Sweetspot specialises in debt consolidation loans (financial reset), combining multiple debts into a single, manageable repayment, with a focus on being debt-free. This approach simplifies repayment and often results in lower interest rates, making it easier for clients to pay off their debts efficiently.

The organisation is unique in that they also reward clients for engaging in financial education and increasing their knowledge and understanding of their finances. This means they can be out of debt quicker than you might achieve with traditional lenders. This feature is unique in New Zealand.

How Does Money Sweetspot Work?

  • They are a digital lender, meaning their online application process takes around ten minutes to complete. It asks what you'd expect in a loan application (income, age, current debts etc) along with one question specific to their service that relates to your motivation for starting your debt reset journey. This is because their loan product is most suited to those who want to be out of debt rather than continuing the debt cycle for years to come. 
  • Once you've submitted your application, you can expect a phone call from one of the team within one working day to review the application, provide a potential outcome, and make sure that the financial reset aligns with your financial goals. 
  • Our discussions with the Money Sweetspot team suggest many successful applicants see significant reductions in their monthly repayments and overall interest charges. 

Money Sweetspot Interest Rates, Fees and Customer Service

The interest rate and fees charged influence the cost of a loan - we explain how this applies to a Money Sweetspot loan.

1. Money Sweetspot Interest Rates
  • Money Sweetspot discloses their interest rates as between 12% and 22%. Their financial reset loans are all unsecured. Our research team confirmed with Money Sweetspot that, as of December 2024, Money Sweetspot's average interest rate is between 15-16%, which is competitive for an unsecured loan, especially outside of the banks and secondary lenders.
  • The types of debt that are included in a financial reset include credit card debt (which is not uncommon to be over 28% and personal loans from higher-interest lenders).
  • A lower interest rate can provide immediate relief through a reduction in repayments and longer-term benefits around a lower total cost of the debt.

2. Money Sweetspot Fees
  • Money Sweetspot measures its success by the number of customers that they lose (because they're out of debt), and they focus on every customer's debt-free date as part of their journey. The focus of getting people out of debt is outlined in a 2023 Stuff.co.nz article which describes the organisation in detail.
  • That means that Money Sweetspot chooses to only charge a loan application fee of $180 (if approved) and a fee if a loan falls behind by more than 60 days.
  • This means that their fees are lower when compared to many other lenders and credit card providers, who can charge fees for things like letters, statements, and missed payments. When looking at any financial product, it's essential to compare the fees, not just the interest rate, as for small loan balances, the fees can be a significant portion of the debt cost.

3. Money Sweetspot Customer Service
  • Money Sweetspot operates in a unique lending space. We understand the organisation focuses on empathy, professionalism, and responsiveness. The New Zealand-based team provides ongoing support throughout the debt consolidation journey, addressing concerns and offering guidance to ensure clients remain on track toward financial freedom.
  • Money Sweetspot provides a customer portal as part of their financial reset journey. The portal includes the usual things such as loan repayment history and balance, but it also uniquely incorporates the opportunity to earn Sweetspot Points for completing financial education, which can be redeemed as additional payments off your loan or into your savings account. We believe this to be one of the most innovative features in the lending and debt-reduction space. 
  • Clients have expressed satisfaction with Money Sweetspot's services in a series of online reviews, consistently highlighting the ease of the consolidation process and the positive impact on their financial wellbeing.

Money Sweetspot Pros, Cons and Alternatives

Pros:
  • Personalised debt consolidation plans tailored to individual financial situations
  • Minimal fees with no hidden costs
  • No default interest is charged if you miss a repayment
  • Empathetic, professional and responsive customer service
  • Potential for lower interest rates and reduced monthly payments

Cons:
  • Only debt consolidation is offered, with minimal flexibility available for new lending and debt
  • It is a digital-only application process that may limit access to those preferring a branch or paper-based service.
  • The average financial reset loan is $15,000, which means that most of Money Sweetspot's customers are working and earning at least $60,000 to be able to afford the repayments on their loan (even with lower interest rates).
  • Eligibility criteria may apply, potentially limiting access for some individuals.

Our view: Money Sweetspot is designed to 'lose' you as a client, e.g. they want your debt repaid and your habits changed so you can become financially independent. This differs from some personal lenders who want to keep you in debt.

Money Sweetspot Alternatives
While Money Sweetspot is a unique service offering comprehensive debt consolidation services coupled with rewards for engaging in financial education, exploring other options is advisable to find the best fit for your financial needs. Alternative services may offer different terms, interest rates, or additional financial planning resources.

Example Case Study: Sara and the GEM Visa Balance

To explain the differences in existing debt arrangements (like credit cards) vs the debt offered by Money Sweetspot, we use the example case of Sara:

Sara is a 37-year-old professional who has been carrying a long-standing balance of $15,000 on her GEM Visa credit card, which has an interest rate of 29.49% p.a. Despite making the minimum repayments each month, her debt is barely decreasing because most of her payments go toward the interest rather than the principal.

Sara’s situation:
  • Debt balance: $15,000
  • Credit card interest rate: 29.49% p.a.
  • Monthly minimum repayment: Around $450
  • Time to repay at minimum payments: Over 20 years
  • Total cost of interest paid: Over $30,000 (double the original debt)

Feeling overwhelmed, Sara explores debt consolidation options and contacts Money Sweetspot. Sara applies to Money Sweetspot for a financial reset loan and is approved for a $15,000 loan at an interest rate of 15% p.a. with a three-year repayment term.

The table below compares how this changes her everyday finances:
Specifics
GEM Visa (29.49% p.a.)
Money Sweetspot Loan (15% p.a.)
Debt Balance
$15,000
$15,000
Interest Rate
29.49%
15%
Monthly Payment
$450 (minimum)
$519
Time to Repay
0+ years (minimum payments)
3 years (fixed term)
Total Interest Paid
$30,000+
~$3,805
Outcome
Debt persists with high costs
Debt-free in 3 years
Key Benefits
  • Substantial Interest Savings: By consolidating her debt with Money Sweetspot, Sara reduces her total interest paid from $30,000+ to $3,805—a savings of over $26,000.
  • Fixed Monthly Repayments: Unlike the fluctuating minimum repayments on her credit card, Sara’s Money Sweetspot loan has fixed monthly payments of $519, allowing her to budget effectively and eliminate her debt in a predictable timeframe.
  • Debt-Free Date: With Money Sweetspot, Sara knows she’ll be debt-free in 36 months, compared to over 20 years of credit card payments.
  • No Hidden Fees: Money Sweetspot doesn’t charge late fees (within a few days) or excessive penalties, ensuring Sara’s repayments are straightforward and stress-free.
  • Empowered Financial Knowledge: By engaging with Money Sweetspot’s financial education tools and earning Sweetspot Points, Sara develops better money habits, which will help her stay out of debt in the future.

Why this example matters: Sara’s story is not unique - far too many New Zealanders are stuck in a cycle of high-interest debt. With Money Sweetspot, you can:
  • Simplify your repayments by combining debts into one manageable loan.
  • Pay off your debt faster with lower interest rates.
  • Build financial confidence with education and rewards.

Disclaimer: The interest rate offered by Money Sweetspot will depend on your financial circumstances, including your credit history and current debts. Additionally, the repayment term you choose will significantly influence your total interest costs. While shorter terms lead to less overall interest paid, they may require higher monthly repayments.

Frequently Asked Questions

Where can I find the fees and understand more?

You can view the detailed breakdown of fees and terms on the official Money Sweetspot website.

Where can I read the loan contract, T&Cs, interest and fees and other useful documents?

Money Sweetspot's website has a useful information page that covers what you need to know.

Does Money Sweetspot allow loan top-ups?

While other lenders may encourage loan top-ups, Money Sweetspot takes a different approach. They focus on helping you reduce your debt rather than increasing it. Loan top-ups are generally not permitted, as they increase your overall debt and extend the repayment period. If you're considering taking on additional debt, it's always best to contact Money Sweetspot first.

Can I include any type of debt in my financial reset?

Most types of debt can be included in a financial reset application. However - mortgage arrears are considered on a case-by-case basis under exceptional circumstances. At the same time, WINZ or IRD debt is generally not refinanced unless there are exceptional reasons, as these debts typically have no or minimal interest.

Do I need to consolidate all my debts with Money Sweetspot?

Yes, Money SwSweetspot'soan is designed as a full financial reset. You apply to consolidate all your debts into one manageable loan. Before applying, check for any fees for repaying your existing loans, as these costs may affect your total consolidation outcome.

How is my interest rate determined?

Money Sweetspot offers personalised interest rates, typically ranging between 12% and 22%. Your rate depends on factors such as your credit report and affordability. The rate will be clearly explained during the loan application process to ensure transparency.

Are Money Sweetspot loans secured?

No, all Money Sweetspot loans are unsecured. This means you do not need to provide any assets as collateral.

What happens if I take on additional debt after consolidating with Money Sweetspot?

Taking on additional debt within 12 months of your loan agreement could put your Money Sweetspot account into a "hold event". This means you won't be able to earn or redeem points during that time. If you are considering taking on additional debt, contact Money Sweetspot first to discuss your situation and explore alternative solutions.

What should I do if I need help with my Money Sweetspot loan?

Money Sweetspot prides itself on empathetic and professional customer service. You'll need to contact their team for guidance if you face challenges with repayments or financial issues. Their goal is to help you stay on track toward becoming debt-free.

Our Conclusion

  • Money Sweetspot provides a unique, innovative, and credible solution for individuals seeking to break free from the cycle of debt and achieve lasting financial stability and well-being. By offering personalised debt consolidation plans and customer service that values your story, not just your numbers, they empower clients to take control of their financial future and work toward becoming debt-free.
  • For more information or to begin your journey toward financial freedom, visit their website for more information or call them on 0508 SPOTTY (776 889).
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