When Debt Becomes a Pathway, Not a Trap

At Soul Capital, we see debt differently. For too long, debt has been a trap for vulnerable whānau — a cycle of predatory lending, high interest rates, and financial stress that compounds inequality. But in the right hands, debt can be a powerful tool for equity and empowerment.

Take Money Sweetspot, a social lender we back through the Te Pae ki te Rangi Fund. They help whānau break free from high-cost debt spirals by consolidating loans at fair interest rates, coupled with financial literacy support. In the past year alone, over 55 whānau across Tāmaki Makaurau accessed these loans, moving from a lifetime of debt toward financial stability and even home ownership.

Debt doesn’t have to exploit. Done right, it restores dignity, creates breathing space, and builds resilience. Every repaid loan recycles capital into the next whānau. That’s impact investing in action — shifting capital flows to where it can transform lives.