FinCap Voices report 2026
Our latest financial mentoring statistics reflect cost of living pressures and the need for increased and ongoing sustainable funding for financial mentoring
Our fourth annual Voices report analyses the circumstances faced by thousands of households who are working with financial mentors to address debt issues.
It's a sobering read:
- A record of more than 30,654 cases in the FinCap run Client Voices system
- 57% increase from 2021
- 121% increase in client debt over 5 years to almost a billion dollars
- The median client was further behind, spending $107 for every $100 of income each week.
Difficult debt can have a long tail in people's lives, and when an opportunity is missed to resolve the issue, their financial inclusion is limited, this challenges their physical and mental health and puts a strain on relationships.
There is an urgent need to reset the chronic underfunding of the sector so essential financial mentoring is accessible and safe for mentors and clients in the years ahead.
The report recommends a $5.5 million increase in government funding and the exploration of levies and voluntary ongoing contributions of $25m from KiwiSaver providers, banks, other lenders, electricity and telecommunications providers, and other financial services. Industry contributions are proposed in recognition of financial mentors' roles in supporting people to have continued access to these markets.
The report shines a spotlight on the urgent need to modernise our debt collection laws. Our results show 86% of financial mentors have seen debt collectors make demands for repayment that would prevent clients from affording essentials.
Fincap continues to recommend the government amend legislation to impose al licensing regime on debt collectors so regulators can monitor for unacceptable practices and can better hold debt collectors to account when they cross the line.
We've also submitted on the Fair Trading Amendment Bill, pointing to the need for clear consequences that prevent harassment and coercion of the increasing number of people who are unable to pay.