Financial mentors in New Zealand: free help, and how they fit with a car loan
A financial mentor is a trained person who works with you for free to sort out your money, and in New Zealand you can reach one through the MoneyTalks helpline on 0800 345 123. Mentors are not lenders and not financial advisers, so they will not sell you anything. If a car loan is on your mind, a session can show you a weekly figure you can afford before you apply.
The short answer
If money feels tight and you are thinking about a car loan, talking to a financial mentor first is a sensible and free step. Mentors work for community services, not for lenders, and they do not charge. They can help you see what is coming in, what is going out and what you can safely commit to each week.
Fair Finance is a referral service, not a lender and not a dealer, and we do not give personal financial advice. One application and one soft credit check go to a panel of approved New Zealand lenders, and we are paid by a lender only if a loan settles. Nobody can promise approval. This page explains what mentors do so you can use them well, whether or not you end up borrowing.
What a financial mentor is
Financial mentors work in community organisations across New Zealand. FinCap, the national body for the sector, describes them as offering free, face-to-face, non-judgemental support. They work alongside you and your whānau to understand your needs, and the help covers more than budgeting. They take your culture and circumstances into account.
MoneyTalks is the national helpline that connects people with these services. It lists more than 180 financial mentoring services on its site. You can reach it by phone, text or online chat, and it can point you to a mentor in your area.
Mentor, financial adviser, broker or lender?
These terms get mixed up, and the differences matter.
| What they do | Who pays | |
|---|---|---|
| Financial mentor | Helps you understand and manage your money, budget and debts | Free to you |
| Financial adviser | Gives advice on planning, insurance and investing, and must be registered with the Financial Markets Authority | You pay for their advice |
| Lender | Lends you money and sets the rate and fees | You repay with interest |
| Referral service | Passes your application to lenders, as Fair Finance does | Paid by the lender if a loan settles |
A mentor is the one with no stake in whether you borrow. That is why a session can be useful before you sit down with anyone who is selling credit. For more on the other roles, see our guide on dealer finance vs broker vs bank.
What a session can cover
The topics depend on you, but common ones include:
- Working out a realistic weekly budget
- Making a plan for debts you already have
- Understanding what is on your credit file
- Talking to creditors, or to Work and Income, about what you owe
- Setting savings goals, including a deposit
- Checking what a purchase would do to your budget
Mentors are not there to judge. If you have fallen behind, missed payments or defaulted, it is the kind of thing they hear regularly. Our page on debt help in New Zealand lists other routes too.
How to find one
- Ring or message MoneyTalks. The number is 0800 345 123. You can also text 4029 or use the live chat on the site, and it can connect you with a service.
- Or search the list. FinCap’s directory lets you search by city or suburb and filter by things like phone sessions, home visits, kaupapa Māori services, disability access and services open outside normal hours.
- Book a time. Each service runs its own appointments, so ask how long a wait is likely to be and whether it can see you by phone.
What to bring
FinCap suggests having these to hand:
- A recent bank statement
- A payslip, or evidence of your benefit or other income
- Power and phone bills
- Photo ID
- Any loan agreements or letters about debts
If you are considering a car, add the quote or advert price and a rough idea of the insurance and registration costs.
Using a mentor before a car loan
A car is often the second-biggest purchase a household makes, and it is a regular weekly cost for years. A mentor can help you decide how much of your budget it can take.
A rough way to think about it: lenders must check that repayments will not cause you substantial hardship, but you know your life better than they do. Our guide on what a car really costs to own lists the extras, such as fuel, registration, warrant of fitness, insurance and servicing, that sit on top of the repayment.
If you are on a benefit, Work and Income does not help you buy a car, though it can help with some car repairs. A mentor can tell you what else might be available.
A worked example (illustrative numbers only)
Say a household brings in $1,100 a week. Before a session, they think they can spend $150 a week on a car. In the session, the mentor goes through the statements with them.
| Their guess | After the session | |
|---|---|---|
| Rent or board | $380 | $380 |
| Power, phone, food | $300 | $300 |
| Existing debt repayments | $60 | $60 |
| Insurance, registration, fuel and servicing for a car | not counted | $120 |
| Missed costs found (school costs, subscriptions) | not counted | $90 |
| Left over for a loan repayment | $150 | about $60 |
The numbers are invented, but the pattern is common. Costs that were not on the table shrink the room for the repayment. A smaller, older car or a bigger deposit may then fit better than the one they had in mind. The repayment calculator shows what a weekly figure means in loan terms.
When a mentor session should come first
Think about booking one before you apply if:
- You are behind on bills or other loans
- You are on a debt management plan
- You have had a recent default or missed payments
- Your income has just changed
- You have been refused finance and are not sure why
Several recent applications can add to the marks on your credit file. A session might help you decide to wait or repair things first, as our guide on how to improve your credit score before car finance suggests.
Red flags
Free help is easy to imitate, so watch for these:
- Anyone who charges you to “fix” your credit file or consolidate your debts without being clear on the cost and who they are
- A debt service that asks for money up front. Free community services do not
- Anyone promising to get you a loan. Nobody can promise approval
- A “mentor” who pushes you toward one product or lender
- Pressure to sign or pay on the spot
If you are unsure, ring MoneyTalks and ask whether a service is a genuine financial mentoring service.
Other free sources
Sorted, run by the Commission for Financial Capability, has budgeting tools and guides. Citizens Advice Bureau branches can point you to local services. If you have a complaint about a lender, there are free dispute services, and our page on car finance complaints covers them.
How Fair Finance helps
If a session leaves you confident about a weekly figure, our online application can take the next step. One soft credit check goes to our panel of approved lenders, who each decide case by case. We are paid by the lender only if a loan settles, and that never changes your rate. Start with the quick check.
Checklist
- Called MoneyTalks on 0800 345 123 or searched the mentor list
- Bank statement, payslip, bills, ID and loan agreements gathered
- Weekly budget worked out, including car running costs
- Existing debts listed
- A weekly ceiling chosen before looking at cars
- Clear on who is free (mentor), who charges (adviser) and who lends (lender)
General information only, not financial advice. Services and details change, so check the official pages below.
Sources
Common questions
What is a financial mentor in NZ?
A financial mentor is a trained person at a community financial mentoring service who works with you and your whānau on your money. The help is free and usually face to face. Mentors cover more than budgeting, taking your situation and needs into account.
Is a financial mentor free?
Yes. FinCap says financial mentoring services are free, and MoneyTalks, the national helpline, is also free. That is a key difference from a financial adviser, who is registered with the Financial Markets Authority and charges for advice.
How do I find a financial mentor near me?
Call MoneyTalks on 0800 345 123, email [email protected] or use its online chat, and it will connect you with a local service. You can also search FinCap's list of mentors by city or suburb and filter by things like phone sessions or home visits.
What should I bring to a session?
FinCap suggests a bank statement, a payslip, power and phone bills, photo ID and any loan agreements. Bringing them lets the mentor see your real income and spending rather than a guess.
Will a financial mentor help me get a car loan?
A mentor will not arrange a loan or tell you which lender to use. What they can do is help you build a budget, deal with debts and work out what you can afford. Lenders decide case by case, and nobody can promise approval.
See your repayments, then get a fair rate.
One application, one soft credit check, no obligation. We match you to the lender most likely to give you a fair go.