Great Debt Escape: From $ 52,000 in the Red to Aspiring Business Owner, Rose Moreland Tells Her Story
It took Rose Moreland three and a half years to extricate herself from $ 52,000 in personal debt.
The Aucklander now saves $ 250 a week on his customer service salary and studies in his spare time with the hopes of someday starting a business using his love of baking.
Her cupcake baking is currently just a side activity, but she hopes to someday turn it into a Papakura dessert shop.
Moreland got rid of her debts through a financial mentoring program from Christians Against Poverty (Cap), which she says was a life-changing experience.
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“I was just working, paying the bills, trying to make ends meet, pawning phones and bringing equipment to the pawn shops,” she said.
There was never any money saved. It was a struggle to pay the rent and prevent the car from being repossessed. The winters were cold and long.
The car loan took about $ 450 a fortnight from her household income.
ANDY MACDONALD / THINGS
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“I thought revolving credit, living with debt was just a normal life,” Moreland said.
But it was difficult, and a glimpse of a better way of life came from a cousin, who could afford to take her children on the occasional vacation abroad.
“When I said, ‘How did you get to Disneyland from all the places? She said, “We are no longer in debt now.” We signed with CAP ‘.
Moreland said she was skeptical and “quite embarrassed by the amount of my debts”.
She had a bank overdraft, credit cards, a personal loan with Instant Finance, and a car loan with Avanti Finance, debts that were in part the result of a former partner with bad credit, so it was all set. to his name.
She estimated that she had been in debt to Instant Finance for almost 17 years, completing the loan every time she paid it off.
But she got stronger and called Cap.
Moreland said Cap budgeted with her and took control of negotiations with the lenders, as well as their payment.
The budget was tight, but covered the necessities, and the Cap system allocated money for savings every fortnight.
Moreland said she was making around $ 1,650 per fortnight at the time.
“A little less than half of that was going to my debts,” she said.
It was tough to stay on budget, but during the three-and-a-half-year journey the amount needed to pay off debts dropped and Moreland was bolstered by hope for a better life.
“I was counting down every month. When it finally happened, it was like winning the lottery for me, ”she said.
She had no more debts in April.
It was supposed to be later in the year, but Avanti agreed to leave the rest of the money owed to him.
“Cap made a deal with them,” she said. “Wow, I wish I could be a negotiator like that.”
“It was such an amazing feeling. I did it. I was standing in the middle of the factory. I had a pie for lunch, and I was in tears. I was so, so grateful, ”she said.
Moreland gained confidence, which she only really noticed when she went to thank the folks in Cap’s office, which was a bit intimidating as about fifty of them were there.
“Old Rose would probably have walked in there and said a quick thank you and maybe a minute’s speech.” My thanks lasted about 15 minutes, ”she said.
She was happy that she could be a good financial role model for her children, two of whom were now adults and the other in school.
She also donates to Cap to help fund her work with other families.
“I want to put them in a better place. I want to make them smile again, give them a healthy family and a happy family, ”she said.
Cap CEO Sam Garaway said: “Rose is an inspiration and another reminder that people are made to thrive and able to achieve amazing things with a little love and support.”
Studying with Open Polytechnic, saving in KiwiSaver for a home deposit, and rediscovering his love for banking, and how it could earn him extra money were all part of Moreland’s flourishing.
“I relaunched my pastry page on Facebook during the lockdown. Every week I sell cupcakes. Contactless collection, of course, ”she said.
She was back in softball (lockdown allows) and paid for everything with her savings, including the car she bought earlier this month.
She had even started saving a down payment for a house to create a base for her family, was using KiwiSaver to help her, and was interested to see the government launch a new shared capital program to help people buy homes.
It may be in a few years, but “I hope the houses will be cheaper by then,” she said.