Kick debt where it hurts

It's January. Christmas is a warm memory of a day filled with feasting and opening presents. Now the bills are coming in.
This time of year can be more stressful than the lead-up to Christmas for many people. Many have spent more than they could afford and they're facing frightening debts.
Dunedin Budget Advisory Service executive officer Shirley Woodrow says people who are likely to run into debt problems don't usually ask for help in December because they don't want to be told not to spend money they haven't got.
But plenty turn up in January asking for help, she says. "If people want to be helped, we can help them."
The first thing to do is figure out how much money is available to pay bills, says Shirley.
Then the bills need to be prioritised.
"Always pay your living costs first," she says.
That means the top priorities are rent or mortgage, food, and electricity.
The next most important bills are those that have consequences if they're not paid - like extra fees being added, or items being repossessed.
Shirley recommends making a list, so people can see what money is coming in, what debts there are, and what order they need to be paid in.
She also urges people struggling to pay debts not to do nothing. Turning a blind eye will make matters only worse.
"Contact the creditors," she says.
It's possible terms can be renegotiated so the problem can begin to be solved.
Shirley also urges people to seek help from their local budget advice service. There are branches throughout the country, listed in the phone book under "Budget". The name varies from town to town, but the service is essentially the same.
These organisations offer free guidance covering everything related to making money go as far as possible.
Staff can help customers draw up a budget, give them practical tips on how to shop wisely, and work out how to tackle existing debts.
There's also advice on what type of bank accounts to have, what type of loans to set up, and how to manage credit.
That will steer people out of trouble and on to the right track for the rest of the year.
The budget advisory service is largely funded by the Ministry of Social Development, which aims to ensure New Zealanders have free access to sound advice.
Another agency helping Kiwis manage their money is www.sorted.org.nz - an online service set up by the Retirement Commission.
This user-friendly system steers people clear of financial pitfalls, with an eye on their long-term future.
People who don't have a computer at home can use one at their local public library to take advantage of this online resource.