Debt is something we all incur at some stage in our lives, but for some, it can be overwhelming and in the current climate more and more people are struggling to make ends meet.
Quite often, debt can be doubly troubling because it coincides with another emotionally stressful situation such as redundancy, a drop in wages, separation or divorce, illness or an unexpected event like a death of a family member or some other personal crisis.
Debt is something we all incur at some stage in our lives, but for some, it can be overwhelming and in the current climate more and more people are struggling to make ends meet.
Quite often, debt can be doubly troubling because it coincides with another emotionally stressful situation such as redundancy, a drop in wages, separation or divorce, illness or an unexpected event like a death of a family member or some other personal crisis.
And when personal finances become a problem one of the commonest questions people have is – what do I pay first? The mortgage, the ESB? The credit card company?
Often, the companies that shout the loudest will be companies like the credit card companies. These are known as ‘unsecured’ creditors. And they come second in the queue of priorities. This guide will give you lots of practical tips including help with identified which debts are priority and which are secondary.
It is worth knowing though that there are plenty of people out there to help – professional agencies, not connected to banks or your creditors who can offer free advice.
Debt can be dealt with in all cases
And more often than not debt can be surmounted over time with a plan in place.
All advisers will number one thing to do is communicate with your bank or any other company you have difficulty paying as soon as you are in danger of getting into trouble.
If you don’t have the confidence to do this, go to one your Citizens Information centre who will be able to put you in touch with MABS, the Money Advice and Budgeting Service or lawyers Free Legal Aid Centres.
Both offer free, impartial advice in person and on confidential information lines.
There are also private companies out there who will help you, for a fee, to negotiate deals with your creditors. The reputable ones will represent you in all correspondence, removing some of the stress of dealing with faceless financial institutions from your everyday life.
All of them will advice you of some of these five golden rules.
A quick search in Google throws up plenty of private agencies who will help you for a fee (around €500), but remember none of them are regulated. So shop around and see who you are most comfortable with before deciding what to do.
It would also help to keep on eye on this site – we will offer updates on all the new government initiatives designed to help people through financial difficulties.
The guide that follows is packed full of advice, tips and case histories compiled with the with the help of MABS and other experts in the field including Moneycoach.ie and Moneyvillage.ie.
Everyone in the business of debt management will recommend you keep a line of communication open with your creditors.
If you feel you can’t do this, seek help. Call MABS on the helpline 1890 283 438. which is open until 5.30pm Monday to Thursday and 5pm on Friday.
MABS deals with 30,000 customers every year and has 60 offices up and down the country. It will deal with all your queries relating to debt and in many cases will work on your behalf and interact with your creditors particularly if you have little or no experience of dealing with creditors.
Your Questions
Email money@rte.ie with your questions in total confidence and we will get answers from the experts and publish the answers (anonymously) here.
