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
What would Santa do to dodge debt this year?
I wonder if Santa is worried about paying the rent at the North Pole this year.
Not to mention feeding all those elves and reindeers, while they are busy preparing to do their super-sonic flight around the globe in one night.
The Debtfix Crew have written to him and here’s their Christmas wish list for a debt-free Christmas.
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.
What to do when friends or family want to borrow money from you
It can be a real struggle knowing what to do when people ask you for a loan, especially if it’s a friend or family member who asks for some extra cash.
Most of us want to help others in their hour of need but before you hand over the bucks, it pays for you to completely review the situation and seek advice from others.
The Debtfix Crew does come across people who have debt problems because they have lent money to friends or family, then the deal went wrong for everyone.
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.
Should I buy an extended warranty?
You’ve bought a nice new printer, electric kettle or smart phone and the super helpful salesperson asks if you’d like an extended warranty or product protection. They politely suggest it’ll only cost a small amount and you can feel safe and sound, knowing your shiny new appliance is covered for an extra couple of years.
STOP.
Extended warranties are frequently offered on items that are for your personal use only and they are similar to the add-on loan insurances often offered by businesses such as car dealers.
Prepare for winter now to avoid budget blow outs
Recently, wild weather hit many parts of New Zealand letting us know winter is on the way and the Debtfix Crew thought it was time to get planning to reduce the risk of expensive disasters.
When your neighbourhood is flooding or the power goes off for a couple of days, the last thing you need to worry about is how to pay for takeaways to feed the family.
The Crew likes to ensure people have contingency money in their budgets for the unexpected and there has been a lot of unexpected during the last couple of years.
Loan repayment insurance could be unnecessary extra debt
You’ve taken a quick loan to buy a new car, to cover the cost of a trip overseas, or even to consolidate your other loans and the finance company asks, “Would you like insurance with that?”
The add-on purchase may not have crossed your mind but when you think about it, the extra security of an insurance that covers debt repayments may sound like a good idea.
The person selling you the loan may imply it is compulsory to buy insurance but what are your rights and what are their obligations?
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.
Make Christmas a debt-free cracker
No matter what’s been going on in your world this year with lockdowns, restrictions, or not much difference in your neighbourhood – we all know Christmas is coming.
This year it threatens to be a biggie because people just want to have a good time. However, the one thing the Debtfix Crew wishes for all friends and whānau is a debt-free celebration that leads to a positive start to 2022.
Don’t put off healthcare when money is tight
Going to the doctor or dentist can be too costly for many New Zealanders and lots of everyday people delay or never get healthcare because they can’t afford it. This greatly concerns the entire Debtfix Crew especially when treating medical or dental problems when they are small is the cheapest way of managing your health.
Delaying healthcare can cost you a lot more than money.