How to avoid Funeral Debt.
Death Without Debt is a nation-wide movement pushing to remove the institutional obstacles trapping our communities in funeral debt
Here, creativity meets opportunity. Whatever you're building, we're here to help you take the first step with confidence. Driven by curiThe average cost of a funeral in NZ is now around $13 000. Yet, some families are running beautiful, dignified, funeral processes for less than a $2000; in some districts, less than a $1000.
Being part of arranging someone's funeral is a time-old and honoured way of showing respect. The tasks of caring for the body, building a coffin or arranging a shroud, as well as carrying and transporting the deceased, bring families and communities together and bear memories important later in the grieving process.
Our first piece of advice is to be very wary of funeral insurance, at least those schemes offered by companies linked to the funeral industry. This doesn't mean you shouldn't save and plan. Our workshops and booklet cover some options.
The next thing is to consider whether you want cremation or burial. (Other technologies such as water cremation are on the horizon but likely to be expensive in the short term).
80% of New Zealanders get cremated. Though generally cheaper than burial, there is a complication. Cremation requires the sign-off of a second doctor, known as a Medical Referee. The original reason for the second doctor was so everyone could be double sure of the identity of the deceased and the cause of death before the body goes up in smoke. It was – and is - a good idea. The problem is, apart from funeral directors, few have any idea how the system works – most doctors included. Which is why New Zealanders are trapped in the commercial business model.
The other issue with cremation is the crematoriums themselves. Throughout New Zealand, only half of our districts have a council-owned-facility. Not all of these are family friendly, and some are not even operated by the council but instead have been leased to private firms.
At least half of NZ therefore has no choice but to deal with privately owned crematoriums. Few of these are willing to unbundle their services. This is why building your own coffin or casket may not save you money; under package deals the funeral director will charge you for the coffin regardless.
Death Without Debt has three major proposals for local and central Government.
Take the middleman out from the paperwork process
Ensure all councils welcome responsible, family-led funeral parties and
Regulate the industry so that funeral directors, and particularly privately operated crematoriums, unbundle their services.
You can support Death Without Debt's work by subscribing on our website. Subscribing is free. Our website also provides details of our funeral workshops. These run through in detail the many ways you can avoid funeral debt and also provide know-how and confidence about the actual funeral process. The workshops are also a great networking opportunities for people wanting to put together the support to make family-led funerals easier.
Each workshop participant receives our 60 page DIY funeral guide - these are also available by emailing Death Without Debt.
Note that in some districts, direct cremation or “budget” funerals are available for as little as $1.9K, but more normally around $2.5 to $3K. These are very simple; the family ring up the funeral director who then comes and takes the body away for cremation. We suggest tailoring direct cremation packages to your needs. You could, for example, arrange for the funeral director to pick up the body after family and friends have spent a day or three with the deceased – perhaps even from the venue where you've had a funeral service. This allows for ritual - crucial for the long term process of processing the death psychologically or spiritually. Ritual can be anything – a service, prayers, a boozy wake or a living room full of flowers.
Lastly, when it comes to funerals, DIY doesn't mean DIA (Doing It Alone). We're all in together. See you over at www.deathwithoutdebt.org.nz
Five questions to ask for a Happy New Year for you
In 2033, what might you say to the you of today? That’s the you who has launched into 2023 and all that it will bring – good, bad, and sometimes just meh.
Since we are all our greatest critics, it’s probably a good guess you’re thinking about the things you could do better and maybe beating yourself up over mistakes you’ve made.
The Debtfix Crew think it would be great if we all started every day, not just each New Year, with positive goals to boost our confidence and to better manage our money.
Money worries have the biggest impact on New Zealanders mental wellbeing
If you’re worried about money right now you are not alone.
Last month it was revealed that “concern about personal finances is now considered to be the biggest impact on New Zealanders’ mental wellbeing, likely related to the increased cost of living.”
Now we are in the Christmas and summer holiday season, which is one of the most challenging times of the year for everyone. There is help.
Is gambling solving or causing debt problems?
The Debtfix Crew are helping more New Zealanders with debt that has resulted from gambling.
We’re not sure why gambling harm is more prevalent now, but we do know there are many ways to clear debt that are more reliable than a pokie machine or a bet on the Women’s Rugby World Cup.
If you or someone close to you struggles with gambling, there are support organisations and solutions to make changes for good.
What happens to debts when you die?
Death is a topic that makes many people uncomfortable, but it is a reality none of us can avoid – not even the royal family.
There’s plenty of advice about preparing wills to pass on your assets to whoever you choose when you die, but when you are more likely to have debts than dollars – what happens?
Will your partner or children have to pay off your debts, or do the debts disappear?
Wondering about bankruptcy
During Money Week the Debtfix Crew wanted to know what New Zealanders were wondering about bankruptcy.
We threw some questions out into cyberspace, and you gave us an insight into what you think our people know about the debt solution.
Most significantly, 86 per cent of respondents wanted to reduce the whakamā (shame) people may experience when they are bankrupt.
New Zealand bankruptcy rates declining but more improvements needed
Since 2019, the total number of applications for bankruptcy in New Zealand have decreased, as have the number of bankruptcy judgments approved by the courts.
The Debtfix Crew is stoked to hear the good news, but we know our work is not yet done.
There are different thoughts about why the number of bankruptcies has decreased, mainly focused on the money distributed to businesses to minimise the fallout from Covid restrictions.
5 steps to make direct debits disappear
Why is it always so easy to sign up for something and so mind-numbingly difficult to shut that same something down when we are done with it?
It’s like joining a club or maybe even a cult – that no one will let you leave.
If you have signed up to direct debits to pay for a gym membership, power account, phone bill, insurances, or any other regular bills, it can feel impossible to stop the payments.
Share your debt problems with someone, there is help out there
When you are just making do, all it takes is one serious accident to suddenly mean you can’t make do. For hardworking Duane, it was a back injury that took him out of his timber mill job and while he recuperated his ACC income was 20 per cent less than usual.
Throw in a global pandemic when he was just getting back into fulltime work, along with his wife losing her job, and you have a seemingly insurmountable financial blizzard.
Paying off your student loan
When signing up to study at a tertiary level thoughts of career prospects, learning about subjects you’re really interested in and student parties are most likely top of mind. For most New Zealanders, university or polytechnic life also means signing up for a student loan.
Debtfix advocates paying off the most expensive debts first and the advantage of a student loan is that while students remain in New Zealand, they have an interest free loan. It doesn’t get much cheaper than that.
How was your Christmas?
That’s another Christmas done, the kids are back to school (hopefully for a full year) and the working year should be in full swing (Covid traffic lights willing).
How’s your credit card feeling? Is it suffering from Paywave fatigue? How about that buy now, pay later account? Has later arrived much sooner than expected?
If you are feeling the effects of post-holiday-debt-disorder you are not alone and now is the time to make one small change to prevent the same cash-tastrophe next Christmas.
Six warning signs debt is a problem
You would be hard pressed to find an adult in New Zealand who doesn’t have some debt, because even signing up for electricity supply or mobile phone plans are both forms of debt.
The Debtfix Crew has noticed many people have similar experiences when debt threatens to swamp them.
What are some warning signs your debt is getting out of control?
Borrowing will be harder
When New Zealanders get out of lockdown and many of them hit the shops, they may be very surprised if they try to borrow money or buy something with an interest free retailer loan. Borrowers will need to provide much more information, which may be a shock to the system for many people.