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Archive: Nov 2016

  1. Debt Help Case Study: A Debt Settlement Arrangement

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    A Debt Settlement Arrangement

    debt settlement arrangement

    Michael and Noreen are struggling to pay their unsecured debt of €35,400.

     

    Michael and Noreen owe €35,400 to their credit card companies and are struggling to pay €750.00 a month to their credit card debt because their income has been reduced.

     

    They have 3 children and are finding it very difficult to pay all their bills as Noreen is unable to work now due to a long term illness.

     

    Noreen used to work full time but now she only receives benefits so the couple cannot afford to make the normal monthly payments to their credit cards as their household income is a lot less.

     

    They tried to negotiate with their creditors but the credit cards companies would not reduce their payments for them and are adding interest to their debts.

     

    Their creditors keep phoning them and are sending them debt collection letters every week asking them to make payments they cannot afford.

     

    Michael and Noreen know they need help so they speak with a Personal Insolvency Practitioner about their debt problems.

     

    They sit down with a Personal Insolvency Practitioner and he offers them Free Debt Advice, he goes through all their income and expenditure details and recommends a Debt Settlement Arrangement (DSA) as the best solution to help them become debt free after 5 years.

     

    The Personal Insolvency Practitioner applies for a Protective certificate first which gives Michael and Noreen protection from legal proceedings by creditors while they are applying for a Debt Settlement Arrangement.

     

    This gives their Personal Insolvency Practitioner time to get all their paperwork together so he can make a proposal to their creditors. A couple of months later the Personal Insolvency Practitioner calls a creditor meeting and their creditors agree to the proposal put forward by their Personal Insolvency Practitioner.

     

    Their Debt Settlement Arrangement has been approved and they will only have to pay their debt back for 5 years. Their new monthly payment towards their credit cards is €300.00 and €17,400 of their debt will be written off.

     

    They won’t receive any more letters and calls from their creditors and will be able to sleep now as they are not going to be worried about their debts. Their Personal Insolvency Practitioner will manage their Debt Settlement Arrangement for them until their debts are paid off.

     

    An Example Of Michael and Noreen’s Debt Settlement Arrangement

     

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    (This is an example of how a Debt Settlement Arrangement can help someone who is insolvent, the monthly payment and the amount of debt written off in each debt settlement arrangement varies for every insolvent person/family as everyone’s circumstances are different, this case study is just an example and will give you an idea of how a debt settlement arrangement can help someone struggling with unmanageable debt)

     

    A Debt Settlement Arrangement is a formal agreement between you and your creditors where you repay a percentage of your debt and your creditors agree to write off any outstanding debt.

     

    If you are struggling to pay your unsecured debts such as credit cards, loans and overdrafts then a Debt Settlement Arrangement could be the right solution to help your clear your debts with affordable payments.

     

    A Debt Settlement Arrangement is an agreed settlement of your unsecured debts (credit cards, loans and overdrafts) with affordable payments over a period of 5 years.

     

    When a Debt Settlement Arrangement is successfully completed you will be fully discharged of the debt included in the arrangement and will be solvent again. You must contact a Personal Insolvency Practitioner to apply for a Debt Settlement Arrangement

     

    If you would like Free Debt Advice then let us arrange a FREE appointment for you with a Debt Advisor or Personal Insolvency Practitioner. There is no charge to speak with a Debt Advisor or Personal Insolvency Practitioner and anything you discuss is kept strictly confidential.

     

    If you are struggling to pay your debts then contact us today on 01 4434125 and find out for free if you qualify for a Debt Settlement Arrangement.

     

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    Rory McGonnell

    Founder of Bright Day Finance

    Personal finance expert and blogger who has an interest in money saving ideas.

     

     

  2. Avoid Getting Into Debt This Christmas

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    Avoid Getting Into Debt This Christmas

    Christmas is a time of celebration and goodwill but too many people overspend at this time of year.

     

    Some people put the cost of Christmas on their credit cards, this is not a good idea as you will have a large credit card bill hitting the door mat in January and will also have to pay interest back on the money you borrowed.

     

    Don’t suffer with a financial hangover in January due to overspending at Christmas.  January is a long enough month without adding that extra stress of worrying about debt.

     

    The best way to get ready for Christmas is to budget it for it and start putting away some money the January before.

     

    I have heard of someone putting off priority payments like their rent or mortgage until January, this is crazy and can lead to many more problems in January.

     

    Other people use moneylenders that call to their door to pay for Christmas and the problem with this is then the following year you will have to pay the money back with very high interest payments of up to 500%!  Avoid high interest money lenders at all costs.

     

    The temptation to take advantage of borrowing to meet the needs and wants of your children this Christmas can be intense but it’s not worth it as you could have a lot of added stress and worry the following year due to this debt.

     

    The best thing is not to borrow money to pay for Christmas instead try and follow these tips to manage your Christmas spending:

     

    Sit down and write out a budget of your household income and outgoings to see how much you can afford to spend this Christmas. Don’t overspend try to stick to this budget.

     

    Ask your kids to choose what they want from Santa Claus early.

     

    Talk to your family about Secret Santa, if you have a large family this can save you all a lot of money. I did this last year and it worked really well, all the adults were included in Secret Santa and the children still received presents as normal.

     

    Make a list of the people you intend to buy gifts for and if possible get creative and make the presents if you can. Get the kids involved too. Hampers are a great idea, buy the contents of the hamper yourself and buy a nice box to put it in, This could save you a lot of money and a lot of thought will go into the present also. Remember good friends don’t need expensive gifts. Set a limit with family and friends on what each will spend on the other.

     

    Leave your credit card at home, pay with cash. Paying by credit card doesn’t feel real and handing over cash will hopefully make you stick to your budget.

     

    Give yourself time to shop around for the best bargains, even buy the January before if you can as there are great deals to be had in the January sales.

     

    Set aside the money for bills expected in January. This will give you peace of mind as you know you will have the money available to pay the bills in January.

     

    When you go to the supermarket be realistically, don’t buy way too much food and drink, people shop like they are never going to get to the shops again, the shops will open again the day or two after Christmas.

     

    Christmas is a wonderful time of year and should be about having a great time with your family.  Don’t get caught up in all the overspending.  Have a lovely Christmas and I hope these tips help you deal with the expense of Christmas.

     

    If you are struggling with debt from last Christmas or struggling to pay your mortgage or credit cards, loans please give us a call on 01 4434125 as we can arrange a Free appointment with a Debt Advisor or Personal Insolvency Practitioner who will offer you Free Debt Advice.

     

    R.McGonnell 7th November 2016

     

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