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Make 2017 The Year You Become Debt Free!

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Make 2017 The Year You Become Debt Free!

Happy New Year Everyone, It’s that time of year again where everyone has made their New Year’s resolutions. The gym is full, everyone you know is on a diet and off the drink, if you have been struggling with debt for a long time and keep ignoring the signs you need help then it’s time to deal with the debt problem head on and make the necessary changes to become debt free this year.

Below are a few pointers that could shift that stubborn debt.

Sit down and get all your paperwork together, work out how much you actually owe to all your of credit cards, loans and catalogues. Then add up all of your monthly debt repayments and this total will show you how much you pay out every month on your debts. You maybe be surprised at the total amount of debt you owe and the amount you are paying on your monthly debt repayments but you need to see this total so you can take stock of your current situation as this will encourage you to make that call to ask for help.

Then write down your total monthly household income (net wage, benefits, etc) on the top of a page and put down all of your monthly outgoings (mortgage repayment, food, electricity, travel costs, insurances, etc) underneath and then add up all of your outgoings.

Subtract your total monthly outgoings from your total monthly household income, if you are left with a monthly figure that is less than your total monthly debt repayment please make sure you give us a call as you maybe be eligible to have your loans, credit cards and mortgage payments reduced to a more manageable amount. Also you maybe eligible to have some or all of your debt written off under the new debt solutions introduced through the Personal insolvency Act.

Here is an example of someone that was helped by one of the Personal Insolvency Practitioners we work with.

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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)

Most people start to struggle with debt when they experience a change in their circumstances.  A relationship breakdown, business failure or being made redundant are just a few reasons why we receive a call from someone worried about debt.

If your are struggling with debt every month then it’s time to get help and deal with the unmanageable debt head on.

Insolvent people finally have a range of difference solutions available to them which tackle the debt problem and will write of unaffordable debt.

There are now lots of solutions available to reduce your monthly mortgage, loan and credit card payments.

Here are the solutions now available and lots of people have already benefited from these new debt solutions:

Debt Settlement Arrangement
A formal agreement where a percentage of the debt is paid and creditors agree to write off any outstanding debt. A Debt Settlement Arrangement is an agreed settlement of your unsecured debts with affordable payments over a period of 5 years.  If you have unsecured debt such as credit cards, loans and overdrafts and are insolvent then a Debt Settlement Arrangement could be the right solution to help your clear your debts. (Insolvent means you are unable to pay your debts in full and when they fall due).

Personal Insolvency Arrangement
A formal agreement that includes secured and unsecured debts where a percentage of the debt is paid and creditors agree to write off any outstanding debt. If you are struggling to pay your secured and unsecured debt, a Personal Insolvency Arrangement may be the right solution for you. This debt solution was brought in by the Government to deal with secured debt (mortgage and secured loans) and unsecured debt (credit card, loans and overdrafts)

Debt Relief Notice 
Gives debt relief to people who have little or no disposable income or assets which they could use to repay what they owe. This is a debt settlement solution to clear less than €35,000 of debt. It enables eligible insolvent debtors to write off their debts where they can prove they are not in a position to repay their debt and it is unlikely their financial situation will improve in the next 3 years. 

A high court process for someone struggling with more than €20,000 of debt. Bankruptcy is a solution to clear all your debts if you have little or no money available to repay your creditors. Before you consider applying for bankruptcy you must have explored the alternative solutions to bankruptcy which includes a Debt Settlement Arrangement, Personal Insolvency Arrangement and Debt Relief Notice. Unsecured and secured debt such as mortgages for family homes or buy to let properties, business loans and credit card loans can be included in bankruptcy. 

Please don’t bury your head in the sand as there are now lots of solutions available that can reduce your monthly repayments, write off unaffordable debt and stop all those nasty calls and letters.

Some clients have told me in the past that making the first call was so difficult for them as they were worried about what we would think of them, but then after they spoke with us they were so happy that they did make that call as they can now see a light at the end of the tunnel and a huge weight has been lifted off their shoulders.

Some of the solutions now available enable you have up to 70% of your debt written off which will also reduce your monthly debt repayments.

If you need help with debt then I can arrange a FREE appointment for you with a Debt Advisor or Personal Insolvency Practitioner who will be happy to see if you are eligible to have your debts written off.

Make 2017 The Year You Become Debt Free! Bright Day Finance

Rory McGonnell

Founder of Bright Day Finance

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

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