"It's the essential items that we might take for granted, around health, education, and even food. When you don't have sufficient income, your options are limited."
It was easy for loans to get out of control, Robert Choy from Nga Tangata Microfinance, explained.
"You can start off making a payment on a loan, but if you get behind, then the penalties, the very high interest that you're paying, basically create a spiral of indebtedness and once you get into that, then, of course, you're paying off more and more interest, and less and less of the so-called principal of the loan," Mr Choy said.
Auckland City Mission head Chris Farrelly said many people on low incomes had little or no money to spare. That meant that when something went wrong, like the car breaks down, or they needed urgent medical treatment, it could be a big financial stress. "So many of our population have no ability to access at all the small amounts, we're talking just hundreds of dollars."
Te Puea Marae chairman Hurimoana Dennis said many of the families who went to them for help last winter were struggling with debt. He said much of what they were earning was going towards repaying that debt, leaving little left over. Hurimoana Dennis says homelessness and poverty are still major problems in the region.
Auckland Action Against Poverty co-ordinator, Vanessa Cole says "We still see people who are living in their cars with children,"
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