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
Deal to debt bootcamp
The Debtfix five-week debt bootcamp kicks off on Monday 9 May, 2022.
Sign up for this free guided programme, now.
What private information do you share?
Privacy is a funny old thing. Some of us don’t want anyone knowing our business, whereas others happily share every what, who, when and where about our lives.
Often it comes down to our trust in an organisation that has our information, and for some unfathomable reason, many people trust social media platforms more than secure websites.
From 9-14 May 2022 the Privacy Commissioner is holding public online events, investigating Privacy: The Foundation of Trust.
10 things we wish our parents told us about debt
Some of the Debtfix Crew are old enough to remember taking a few coins along to school and handing them over with our bank book and a deposit slip to slowly build up a wee nest egg. We learnt about saving for a rainy day, earning interest on our meagre bank balance and maybe we got into the culture of New Zealand’s banking system.
However, no one talked to us about debt.
Life goal to help people with financial knowledge
Moving halfway around the world takes a lot of planning, courage, and determination, which are also great qualities for a Debtfix Navigator.
Our newest Crew mate, Bianca du Bois, came to New Zealand with her husband and their two young children in 2017.
She says she likes a challenge, which is highly likely when starting over with a young family in a new country.
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?
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.
Moving on in life after paying off debts
There is nothing like the relief we feel when a problem is resolved, and we have choices about our future.
The Debtfix Crew has seen it often and they know people do move on when they get debt under control. They love nothing more than seeing a person turn their life around and move on to a more positive future – all because of a debt solution.
People from all walks of life have debt problems
Popping into the Debtfix office to deliver some kelp salt to a Crew member inspired Josie Jackson to apply for a job with the social enterprise that helps people take control of their debt.
Josie is a local legend, well known at the Matakana Farmers’ Market where she sells her divine range of nut butters and edible seaweed salts. Her philosophy is to live sustainably and to help, whether she’s helping the planet or people so it’s not surprising Josie was intrigued by the work going on in the Debtfix office.
Gentle approach to jobs with purpose
Varied roles helping people and the planet have provided a new member of the Debtfix Crew with great experience to support clients when they are ready to reduce their debt.
When Karen Ludeman describes all the different careers she has had, you sort of wonder how this woman has managed to fit everything in. The theme through all her jobs was, and still is, a commitment to making something better, from cultivating an organic orchard or giving supportive guidance as a nutritionist and fitness coach.
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.