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Both options are non-taxable, interest-free, recoverable financial assistance to meet essential immediate needs. However, this amount can quickly add up. A person in Auckland city has amassed $3010 for five grants in the same time period.
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Hamilton Budgeting Advisory Trust manager Tony Agar said once people reach their maximum advancement they tend to go to more expensive loan options. As people reach their advancement limit, which is decided upon on individual cases, Agar sees clients getting into more and more debt. “The Work and Income advances are interest free, so that is one of the advantages of doing it through Work and Income.