Sometimes, when people reach out to us, they think there’s only one way forward – maybe a hardship application, a small top-up, or just one more short-term fix. But at Loansmart, we know that with a bit of strategic thinking and a closer look at the whole picture, there’s often a much smarter path.
This month, we helped two clients who were feeling the pressure from overdue payments, mounting arrears, and limited options. Both came to us thinking their situations were too complicated to fix – but by taking the time to understand their goals and challenges, we turned things around in ways they never expected.
Case Study #1: Aroha’s Debt Consolidation Rescue
The Need
Aroha, one of our long-time clients, reached out to find out the status of her current loan. She was under significant financial pressure – her mortgage and other loans had fallen into arrears, and she was considering applying for hardship to access her KiwiSaver funds.
The Challenge
While hardship might seem like an option, it can have lasting consequences on a credit file, making future lending much more difficult. Aroha’s arrears across her mortgage and personal loans were mounting, and she was feeling stuck – convinced hardship was the only way forward.
The Solution
At Loansmart, we always take the time to look at the whole situation and explore every possible path before hardship becomes the only option. In Aroha’s case, we suggested consolidating her debts instead – paying off all arrears and reducing her loan payments to make things more affordable.
We managed to secure an approval that brought her mortgage and all loans up to date, significantly reduced her weekly repayments, and even provided extra cash to repair her car. What started as a stressful, uncertain situation quickly turned into a practical, manageable solution.
By tackling her arrears and simplifying her repayments, Aroha avoided having a hardship mark on her record – and gained the breathing room she needed to move forward with confidence.
Case Study #2: Renee’s Inheritance-Backed Turnaround
The need
Renee came to us needing $25,000 to pay off IRD debt and a significant default. But her situation was far from simple — she had no income at the time (having recently stopped self-employment and waiting on ACC payments), her mortgage was three months behind, rates were in arrears, and she had a $12,000 default with Latitude. Her credit history was poor, and traditional lenders had already said no.
The challenge
With no income and multiple overdue payments, Renee felt she had run out of options. Every door seemed closed – until she reached out to Loansmart.
The solution
When we looked more closely, we discovered that Renee had a $250,000 inheritance due in March next year, confirmed through her family trust. That opened up an opportunity to structure a secured loan using her home as collateral, with no repayments required until March 2026 – perfectly aligned with when her inheritance would arrive.
This solution meant she could immediately clear her IRD debt and default, bring her mortgage and rates up to date, and regain control of her finances. After months of uncertainty, Renee finally had the stability she needed. She told us she couldn’t believe anyone was willing to help — and that this solution gave her hope again.
Many of the financial scenarios we deal with are complicated. They aren’t about quick fixes – but looking deeper, thinking smarter, and finding opportunities where others might not. At Loansmart, we don’t just lend; we create strategies that help our clients move forward.
Ready to see what’s possible?
Get in touch with our friendly team for a free assessment. Let’s look beyond the numbers and build a solution that works for you.
