There is nothing to be gained from hiding from your debts, no matter how overwhelming they may seem.
So the best thing is to face your fears and deal with your debt. If you don’t your credit rating could be affected.
And if your debt relates to a mortgage, you could potentially lose your home.
Do not ignore penalties or fines – the cost of these snowball, as late payment incur more fines.
Before you know it you could be facing hundreds of thousands of euro in fines, court action, and in extreme circumstances a stint in jail.
Using these five golden rules to debt management you can get work yourself out of the black hole and get your life back on track.
Remember it is in everyone's interests including creditors who are harassing you, to find a remedy.
And in December 2010, the Central Bank made it virtually impossible for banks and building societies to get repossessions except in exceptional circumstances. So even mortgage companies are obliged to listen to your financial story.
It is also useful to look at this table below and see how common debt is in Ireland today.
The table relates to a survey conducted by the Money and Budgeting Service and shows the type of debt that is the most common in this country.
The number one personal loans (for cars, home improvement etc), number two utilities - electricity and gas - and number three credit cards.
| Personal loans |
| Utilities |
| Credit cards |
| Mortgage |
| Hire purchase loan |
| Money lender |
| Overdraft |
| Rent |
| Catalogue |
| Fines |
| Sub-prime loans |
| Waste Charges |
| SOURCE: MABS SURVEY |
