At the start of April there were some significant changes to the Student Loan Scheme and Kiwisaver. The repayment rate for student loans increased from 10 cents to 12 cents on every dollar earned OVER $367 per week ($19.084 per annum). While there is an upside to this – you will pay off your debt faster – it means there will be less money in your pocket. In addition, the voluntary repayment bonus has been done away with – this rewarded you if you paid an extra $500 or more off your loan in a tax year. So, there goes that incentive! Another change that will directly effect many people is that those who used to contribute 2% to their Kiwisaver account now have to contribute 3%, as will their employer. The upside is the obvious increase in your retirement fund, but again, there will be less in your take-home pay. If both these changes apply to you, it might be time to rewrite your budget to see the difference on a weekly basis and make some adjustments to your spending plan.

The number of beneficiaries who have had their income cut after failing to meet work-testing requirements has doubled under National and is set to rise further after the final stage of reforms passed into law last night. Read full story here:

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10876513

It can be really scary when bills come in that you know you will struggle to pay. Leaving them unopened avoids the problem in the short term, but only makes the problem worse over time. Read what the experts at the NZ Federation of Family Budgeting Services have to say at http://www.familybudgeting.org.nz/budgeting-news/what-to-do-if-you-cant-pay-a-bill/

Increases in bills sees retailers and lines blame each other, but ultimately it is low income families who suffer the most. Read this story here  http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10835491

Keeping up with the Joneses can be costly…many middle-to-high income people are drowning in debt and living in a literal house of cards…read more here http://www.stuff.co.nz/business/money/7616361/Keeping-up-with-the-Joneses

You see your ideal car.It’s yours for a reasonable-sounding weekly payment. But what is the true cost? Before taking out finance, be sure to check you’re getting a good deal. Here are some things to think about. Check the true cost This is the total amount you’ll pay. Add up the cash price plus the total interest, extra fees, insurance and warranty costs. Ask to see the Consumer Information Notice – it’s usually on the car window – to check there’s no money owing on the car. If it says “there is a security interest registered over this vehicle”, there may be an outstanding debt – which you don’t want to be stuck paying. Finally, it’s worth getting the car checked by an independent mechanic (not someone that the dealer suggests) to make sure it is a good buy. Check out the competition It’s a good idea to shop around. Compare the price with other car yards and online. Also compare finance prices – look around for the best credit option for you. Ask a bank, credit union or other finance companies if they can give you a cheaper loan to get the car you want. Negotiate a deal Loan fees have to be reasonable. If they seem too high, ask them for a better deal. Also check what the fees are for. For example, an extended warranty (or breakdown insurance) may be a waste of money. This is because you are already protected by the Consumer Guarantees Act. Finally, remember to read the whole loan contract before deciding whether to go ahead, especially the part headed “What could happen if you fail to meet your commitments”. This will tell you the penalties and what can be repossessed from you if you don’t pay. It’s a good idea to talk about the car and the finance deal with someone you trust, a law centre or budget advisor. That way you can make sure the car you want comes with a loan you can live with.

The People’s Centre is an amazing alternative to paying huge medical and dental costs. Cheap treatment fees and payment plans negotiated to suit your income. Click here to visit their website.

A fairer child support scheme is being promised as the amendment bill proposes changes to calculation formulas and penalty rules. Read the media release and questions and answers by clicking here

The Commerce Commission is investigating a complaint that Countdown supermarkets may be misleading shoppers with false “specials” prices… to read more click here

The Herald reports that an overall ‘belt-tightening’ is taking place as New Zealanders respond to the economic  climate. Click here for story