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Financial mentors say households like Anne’s are increasingly the sorts of clients they see asking for help.
Kathleen Guttenbeil, from Vaiola Pacific Island Budgeting Service Trust in Auckland, said it was clear that the “middle class” was starting to feel the stress.
She said she would see people coming in with both halves of a couple working, not entitled to any benefits because they were earning more than the threshold, but struggling.
Andrew Henderson, executive officer at Dunedin Budget Advisory Service, agreed.
“From our service in Dunedin we’re seeing more and more people who you would think would be ‘middle income’. They’re starting to struggle.”
He said the rising costs of mortgages was taking a chunk out of families’ food budgets.
Tessa Bell, financial mentor at Nelson Budget Service, said it had become apparent there were no longer “luxuries” for a lot of people.
“Insurance has moved into a luxury category for a lot of our clients. Stuff we take for granted… in Nelson rates increases have been in the 7% to 9% [band]. Personally, mine has jumped $500 a year. It takes a bite, it’s $15 a week you have to find from somewhere… you add mortgage rates on top of that and the cost of living has dramatically increased across the board.”