AUT University New Zealand 2025: Working with DebtManagers lifts wellbeing – what it means for Australia
Summary:
What AUT (NZ) found: Better mental health & wellbeing, stronger financial control, and lower risky behaviours; no negative measures across 29 items.
Real-life benefits: More engaged parenting and job-seeking; fewer issues with alcohol, drugs, gambling, and violence; people felt treated as a person, not a file.
Voluntary vs involuntary: Both groups improved; item-level differences but no significant overall gap.
Why it matters in Australia: Same progressive pathway in Australia (customer-driven, no fees/excessive interest, options to engage, face-to-face where needed). AU impact study planned.
What AUT studied in New Zealand and why it matters
AUT University surveyed current and past New Zealand customers using validated tools to see whether outcomes moved meaningfully away from “no change.” They tested mental health & general wellbeing (GHQ-12), Financial Locus of Control (FLC), and day-to-day behaviours. The big picture: starting a structured plan with DebtManagers is associated with better wellbeing, more control, and healthier behaviours.
The headline: no negatives, real gains where it counts
Across all 29 items, the study found no statistically significant negative outcomes. Instead, customers reported positive movement across mental health, locus of control and behaviour linked to their interactions with DebtManagers.
What changes for customers (examples from the New Zealand study)
Mental health & general wellbeing: clear lifts in feeling useful, facing up to problems, and feeling reasonably happy.
Financial Locus of Control: stronger agreement with “my future depends on me” and “I can do just about anything I set my mind to” ” – this is the confidence needed to stick with a plan.
Behaviour change: more engaged parenting and job-seeking, and statistically significant reductions in alcohol, binge drinking, drug use, gambling, and violence (tobacco largely unchanged). These are the everyday shifts that move people from crisis to stability.
Voluntary versus involuntary
AUT compared voluntary and involuntary (court-imposed) agreements. Both groups improved across mental health, financial control and behaviour, with no statistically significant overall difference between them. Item by item, there are nuances (e.g., some behaviours move more in one group than the other), but the overall pattern is consistently positive.
Why our way of working helps, and how it maps to Australia
The research notes many people avoid intrusive, one-size-fits-all contact and value choice and consent. Our model, both in New Zealand and Australia, is designed around that reality:
Customer-driven repayment plans people can actually sustain.
No fees or excessive interest that would otherwise make things worse.
Breathing space and hardship options without hurdles.
Debt relief when recovery conflicts with our values or circumstances.
Face-to-face support (where needed) to co-design affordable plans and connect to local financial counselling and community services.
These settings line up with the improvements AUT observed: more control, lower stress, healthier behaviours.
What this means for Australia
While the study was conducted in New Zealand, the customer challenges are familiar across Australia: cost-of-living pressure, variable digital access, complex life admin, and stress that compounds poor financial decisions. We operate the same progressive pathway here, centred on fair treatment, no fees or excessive interest, and practical support, so we expect comparable benefits for Australian customers.
Next step: We’re scoping an Australian evaluation with independent researchers to measure wellbeing, control and behaviour outcomes in the local context and will publish the results once complete.
FAQs
What is “Financial Locus of Control” and why does it matter?
It’s how much someone feels their choices drive their financial situation. The New Zealand study found strong increases after people started working with us – confidence that underpins better day-to-day decisions. We expect to test this in Australia as part of our planned evaluation.
What about people on court-ordered plans?
In New Zealand, they improved too. AUT reported no significant overall difference between voluntary and involuntary groups across the main measures – benefits still show up. We’ll confirm the pattern in Australia with local research.
How will you assess impact in Australia?
By partnering with independent researchers, using validated wellbeing and behaviour measures, and reporting results publicly, just as we do in New Zealand.
Read the full report
Read the full AUT research report here.
