Managing your debt
How to repay your debt and stay out of debt in the future
Repaying your debt
If you’re on income support we usually take a set amount out of your payments every pay day to repay your debt – until the debt is fully paid off.
The amount we take depends on what you can afford, and can change if your circumstances change. If you want to pay off your debt faster you can choose to make extra repayments at any time.
Talk with your Case Manager if you have any questions about your repayments.
If your income support stops
You need to call the collections unit and arrange to repay the money you owe. We will explain your options and help you work out a repayment plan to suit your budget.
You can pay off a lump sum at any NZ Post Shop, send us a cheque, set up regular deductions from your wages or bank account, or make repayments by phone or internet. While you’re repaying your debt you’ll have a Debt Management Officer you can call if you have any questions.
Keeping track of your debt
It’s a good idea to keep track of your debt so you can budget for your repayments.
We don’t send out regular statements unless you ask us to – but you can call us anytime to find out how much you owe.
If you’re not coping
We know it can sometimes be difficult making repayments while you’re on a low income. So if you have trouble keeping up with your repayments please call us as soon as you can.
We may be able to help by reducing your repayments or providing extra income support for instance – or refer you to someone else who can help. You may also find our booklet Need extra help with costs useful.
Remember your debt won’t go away
We actively collect debts owed to us, and take the time to trace people who owe us money. One of the ways we do this is by comparing records with other Government departments (see the Benefit Fraud leaflet for more details).
We also have certain legal rights if you don’t repay us, for instance we can have money deducted from your wages or bank account.
Who you can talk to
If you have any questions about your debt or repayments please call
- 0800 559 009 if you get income support, or
- The collections unit if your income support has stopped.
Preventing debts in the future
Once you’ve paid off your debts, it’s really important you try and stay out of debt. Here are a couple of things you can do to help prevent getting into debt in the future.
Tell us about any changes
By telling us straight away about any changes to your personal situation, you can help ensure the right amount of income support is paid to you so you don’t end up owing us money. You should tell Work and Income straight away if you:
- find a job or have a change in the hours worked whether paid or unpaid
- become self employed or start to run a business
- intend to travel overseas (even for a short time)
- start/finish part-time or full-time study
- are imprisoned or held in custody on remand
- are admitted to or discharged from hospital
- have been granted an overseas pension
- get married or separate, start or end a civil union or de facto relationship with someone of the same or opposite sex
- a change in the number of children living with or supported by you
- have a change in accommodation costs
- have any other change that may affect your benefit entitlement or rate of payment of income support
- change your name, address or bank account number
Create a budget plan
A budget plan can help you manage your money better. It means you can be more prepared if you suddenly have an unplanned expense – and it means you may not need to borrow money to meet these expenses. Ask your Case Manager for advice or pick up a copy of our Managing your Money brochure to help you get started on a budget plan.
Please call us if you have any questions about your debt or repayments.
Inland Revenue Department
General enquiries: 0800 227 774
Working for Families Tax Credits: 0800 227 773
Child Support: 0800 221 221
ACC
General claims: 0800 101 996
Sensitive claims: 0800 735 566
Others
Citizens Advice Bureau: 0800 367 222
NZ Federation of Family Budgeting Services (Inc) Listed in your local telephone book under: Budget Advice Services
