Are a married couple in their fifties. Lynn is wheelchair bound after a car accident and Real Estate Agent Matt has experienced a big drop in earnings with the weaker housing market.
Topping up their mortgage last year meant they were able to customise their home to suit Lynn’s disability, but now they are struggling to keep up with their mortgage payments.
Jim from the ASB Financial Help Team noticed this and contacted Matt and Lynn to see how he could assist. Together they developed a plan to help the couple get back in control of their finances.
Matt & Lynn's Plan
1. Financial SnapshotGet 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.
3. Set 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.
4. New sources of income
Visit WINZ to see if you qualify for help and start looking for a new job with regular income.
5. Reduce payments
Consider selling the property, if not then talk to the bank about restructuring the mortgage to reduce payments.
How Lynn and Matt implemented the plan
Because they had customised their home for Lynn’s needs, they really did not want to sell.
They decided to change to interest only payments on the mortgage for six months to reduce the amount they have to pay each week until they get on top of their finances.
They also went to WINZ and found that Lynn qualified for a disability allowance, and due to their drop in income, an accommodation supplement.
Matt returned to teaching, which was his original career. This will provide a much steadier income base and he has rediscovered his love of teaching children.
Teaching also leaves Matt time to garden, and the couple are saving on food bills by growing their own vegetables.
