Conquering Debt in New Zealand: Insights from Shelley Palman on Financial Wellbeing
- Jun 30
- 3 min read
Debt can feel like a heavy weight that affects more than just your bank balance. For many New Zealanders, it brings stress, sleepless nights, and a sense of isolation. Opening your banking app might trigger anxiety, unknown calls can cause dread, and asking for help may feel embarrassing. If this sounds familiar, you are not alone.
In a recent episode of How We Money, financial wellbeing expert Shelley Palman from Enable.Me shares honest and practical advice on managing debt and reducing financial stress. This post breaks down key insights from that conversation, offering clear steps to help you regain control of your money and your life.
Listen to the episode here: https://rss.com/podcasts/maorimillionaire/2952633
Understanding Different Types of Debt
Not all debt is the same. Shelley explains the difference between good debt and bad debt, which is crucial for making smart financial decisions.
Good debt is borrowing that helps build your future, such as a mortgage or student loan.
Bad debt usually involves high-interest borrowing like credit cards or Buy Now Pay Later (BNPL) schemes that can quickly spiral out of control.
Knowing which debts to prioritise can help you focus your efforts effectively.
Taking the First Steps to Get Out of Debt
Starting can feel overwhelming, but Shelley advises breaking the process into manageable steps:
List all your debts including amounts, interest rates, and minimum payments.
Create a budget to understand your income and essential expenses.
Identify areas to reduce spending and redirect that money towards debt repayment.
Contact your lenders if you’re struggling; many offer hardship options or flexible payment plans.
By taking these steps, you build a clear picture and a realistic plan.
What to Do When Debt Feels Overwhelming
Debt can feel like a mountain too steep to climb. Shelley recommends:
Avoid ignoring the problem. Facing it head-on reduces anxiety.
Seek support from trusted friends, family, or financial counsellors.
Focus on small wins. Even paying a little extra each week can build momentum.
Practice self-compassion. Financial struggles don’t define your worth.
These approaches help reduce the emotional burden and keep you motivated.
When KiwiSaver Hardship May Be an Option
KiwiSaver can sometimes provide a safety net. Shelley explains that in certain situations, such as serious financial hardship, you may be able to access your KiwiSaver funds early. This is not a decision to take lightly, but it can be a useful option if you:
Are unable to meet minimum living expenses.
Have significant debt that is causing severe financial stress.
Before making this choice, consult a financial adviser or counsellor to understand the implications.
Should You Pay Off Your Mortgage or Start Investing?
Many New Zealanders wonder whether to focus on paying off their mortgage or begin investing. Shelley advises considering:
Your interest rates: If your mortgage interest is higher than potential investment returns, paying off the mortgage may be better.
Your financial goals: If you want to build wealth long-term, investing might make sense alongside mortgage repayments.
Your comfort level with risk and debt.
There is no one-size-fits-all answer. The key is to make an informed decision that aligns with your situation and goals.
Building Money Habits That Support Freedom
Shelley highlights that getting out of debt is not about perfection but about building habits that lead to financial freedom:
Track your spending regularly.
Set realistic goals and celebrate progress.
Automate savings and repayments where possible.
Educate yourself about money management.
These habits create a foundation for lasting financial wellbeing.
Moving Forward with Confidence
Debt can feel isolating, but it doesn’t have to be. The conversation with Shelley Palman reminds us that financial wellbeing involves understanding your emotions, creating a clear plan, and taking steady steps forward. Whether you’re dealing with credit cards, personal loans, or mortgage stress, practical advice and support are available.
If you’re ready to take control, start by using free tools like the ANZ Budget Calculator to map out your finances. Remember, progress is about consistent effort, not perfection. You can also learn about managing debt here!
Your journey to financial freedom begins with one step. Take that step today.
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