A Dunedin charity stopping debt from spiralling is helping Dunedin families.
A Momona woman, who did not want to be named, said the family ''struggled'' to make ends meet and applied online for a $3000 loan with finance company GE Money Visa.
''They make it easy to get and then slap on 29.9% interest. I was paying the minimum weekly payment and it wasn't even covering the interest. It's bad.''
With the debt growing, she got another $2000 loan with GE Money Credit Line.
When it became difficult to pay bills, she visited Family Works budgeting service in Dunedin.
''It has helped me out a lot and I've got most of my debt paid off.''
The Moray Foundation lent her $5000, interest free, to pay off the debts with GE.
Foundation chairman Norman Thompson said the foundation was an independent registered charitable trust, established in 1993 by Presbyterian Support Otago.
It aimed to provide interest-free loans to help Otago people avoid getting into unsustainable debt.
The foundation had given more than 600 loans, worth more than $1 million.
The loan applications were channelled through local budget advice agencies, which ensured the person loaning the money received ongoing support and financial advice.
The foundation lends up to $5000, interest-free, repayable over a maximum of three years and had made advances of up to $1500 to buy or repair a necessary asset, or to enhance a family's health or education, he said.
PSO chief executive Gillian Bremner said the foundation had a ''desire'' to investigate lending money to people for emergency financial assistance, ''to stop people getting into debt in the first place and going off to a loan shark when they want to get their car fixed and can't''.
GE Money did not respond to interview requests.
