Have two young daughters and a mortgage. When Karen decided to stay home to look after the kids, Ryan became the sole breadwinner for the family. The couple knew they had to act fast when Ryan found out his job as a mechanic was being made redundant.

Karen and Ryan’s mortgage payments are $950 a fortnight. They don’t have savings and they owe $1,000 on their credit card.

Karen and Ryan rang the ASB Financial Help Team on 0800 27 27 35, who helped them to develop a plan.

Karen and Ryan's Plan

1. Financial Snapshot
Get a clear picture of your finances by filling out a My Finances Form.

2. Reduce expenditure
Review bank statements to see where non essential spending can be cut; research ways to save on food, power and entertainment. Consider selling one of the cars.

3. Make a budget
Budget how much money you expect to receive and how you will spend it. Start with essential payments then work out how much you have left for discretionary items. Sell assets if you can, such as a second car.

If you are a FastNet customer, Track My Spending offers you an easy way to see what's happening to your money. Track My Spending lets you code items in your online bank statements in categories, and then view graphs that show exactly where your money goes.

4. New sources of income
Start looking for a new job immediately, talk to WINZ about the ReStart redundancy package, consider hosting an overseas student or boarder, investigate Karen’s work options.

5. Investigate hardship access to KiwiSaver funds
Check on the Kiwisaver website. In some cases you are able to apply for an early withdrawal of some funds from your KiwiSaver account on the grounds of hardship.

6. Get rid of short term debt
Pay off credit card balance with holiday pay and use it only in emergencies.

7. Reduce/suspend mortgage payments
Consider extending the term of the loan, going interest only for six months, or taking a mortgage holiday.

How they implemented the plan

Ryan immediately started looking for another job, he took advantage of the redundancy help offered by the company he worked for - this included career counselling and help writing his CV.

Karen went to Work and Income and found out the family qualifies for around $450 per week in different payments and accommodation allowances through the unemployment benefit and ReStart Package.

They also started hosting overseas students from the local high school, which brought in another $120 a week after extra food and bills.

Selling one of their two cars meant they could pay off the credit card debt and save on extra car expenses.

ASB allowed Karen and Ryan to take a three month mortgage repayment holiday while Ryan looked for a job and Karen looked for part-time work while the kids were at school.

Now we have some breathing space. I have had three job interviews and I feel confident that I will find a job soon.