Ireland is one of the most indebted nations in Europe. Being in debt is very stressful and a huge burden on families. With the right advice, debt can now be eliminated and the steps that can be taken to get out from under it.
The causes of debt can make people feel ashamed, guilty, frustrated and angry and can seriously affect both their mental and physical health. In many instances people are finding it very difficult to buy basic groceries. In some cases they have had their electricity cut off. All this is due to the fact they are being pressured to pay debts in monthly instalments for amounts they simply cannot afford. In my experience as a director and Personal Insolvency Practitioner (PIP) at UHY Insolvency, people have got into debt through no fault of their own, and this creates enormous guilt and pressure on the individual, or family.
The most important thing to do when in debt is to not ignore the problem and hope that it will go away. It is important to be aware that you are not on your own. Thousands of people in Ireland are struggling financially, there is support available, but be sure to tackle the problem early. Debt will not go away on its own and if you find it difficult to deal with the problem and with creditors, you should get in touch with a PIP for help.
One of the biggest mistakes that people make is borrowing more money to get out of debt. Many people think this is a good way of helping them get out of financial difficulty. You cannot borrow your way out of trouble, you must budget your way out of debt.
Many people believe that once they are in debt, it is almost too late to do anything about it. What they don’t realise is that debt can be negotiated downwards, as much as 80%! For example, a total debt of €84,500 can have up to €68,500 written off. This only leaves €16,000 that would be paid off over five years. It is also possible to freeze high interest and charges, By using the services of a professional debt management company you can speed up the process of restructuring a debt, and enter into a realistic payment plan that you can afford. You may be entitled to free financial and legal advice under the Abhaile scheme. If you call us using the number below we can check your eligibility.
Along with restructuring your debt, there are many small things you can do on a daily and monthly basis to work your way out of debt. One of the most basic tolls is creating a realistic budget and sticking to it. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the essential bills are paid to be spent elsewhere. When this is completed prioritise your expenses. Essential expenditure would be your mortgage or rent, utility bills and car lease. Other essential expenditure would be food, clothes, medical and health costs, etc. Non-essential or secondary debt could be credit card, unsecured term loans, overdraft facilities and catalogue debt. Secondary debt payment should be no more than 20% of your overall income, and “do not pay whoever shouts loudest first”.
A few extra tips to help you on your way to financial freedom include becoming a savvy shopper and consumer. Look for deals, bargains and savings when you are at the store. Another thing is to look for extra ways to make some money, like taking on a part-time job if you have the time. Another would be taking in a boarder at your home. There are many ways to bring in additional income.
I believe that the main and vital thing to do is to face debt head on. You have to acknowledge the problem and start working on a plan to solve it. Do not be afraid or embarrassed to seek help and guidance. Personal Insolvency Practitioners are highly knowledgeable with debt issues and are used to dealing with creditors. They will assist you in forming a plan and a budget to get you out of debt. Just having someone on your side that knows what you are going through can reduce your stress and put you at ease.
For more information get in touch with an expert financial adviser at UHY Insolvency on 1890 987 913 or visit our website at www.uhyinsolvency.ie
Source: Eugene McDarby – Original article, Dundalk Democrat Tuesday November 22, 2016 www.dundalkdemocrat.ie