Short-term loans can seem like quick financial fixes but often lead to overwhelming debt due to high interest rates and hidden fees. To avoid these pitfalls, individuals should establish budgets, build emergency funds, explore alternative financing options, and maintain financial literacy, empowering them to make informed borrowing decisions.

This article outlines essential strategies for effective debt management in New Zealand, emphasizing the importance of understanding debts, evaluating interest rates, and creating a repayment plan. It also highlights available resources, such as credit counseling services and government assistance programs, to help individuals alleviate financial burdens and enhance their economic well-being.