5 things that make debt resolution less daunting than you think

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Take a deep breath and seek help to tackle your debts

Author Mark Twain said: “The secret of getting ahead is getting started” but when it comes to dealing with debt, people often delay taking the first step because they are afraid of what the debt resolution process might entail. As a result, they fall deeper in debt before they finally seek help.

When you are struggling with crippling debts you are likely to feel stressed, under pressure or even depressed which means the thought of calling a debt solutions helpline, filling in an online debt calculator or crossing the threshold of a Personal Insolvency Practitioner (PIP) for the first time may simply be too daunting or difficult to contemplate.

The best way to alleviate these kind of fears is to learn about the process that begins when you seek expert help, what kind of information you will need to gather, the kind of questions you will be asked, and what kind of options may be open to you.

1. PIPS and Money Advisers are there to listen and help not to judge you

Professional debt advisers fully understand that people of all walks of life can fall into debt for any number of reasons. They are not there to judge you but to use their professional expertise to find the most appropriate and beneficial debt solution for your circumstances. It may reassure you to check the credentials of the company you are dealing with and you can also check the Register of Personal Insolvency Practitioners maintained by the Insolvency Service of Ireland which lists all individual authorised PIPs. If you are asked to attend a Fact Find meeting with your adviser, don’t worry - it’s not about grilling you on how you got into debt. The focus is on finding out what kind of debts you have, how much you owe and to whom as well as what sources of income you have and your regular outgoings. The objective is to work out the best way to deal with your Creditors and protect you from legal action and to transform unmanageable debt into manageable debt.

2. You won’t be the first person to walk in with piles of unopened bills

People are often so afraid of the financial situation they feel trapped in that they hide from the reality of it by not opening mail from banks, mortgage lenders or credit card companies who may be pursing them for overdue or unpaid bills.  If you are in this situation, don’t worry - your adviser won’t be shocked - they will be able to support you in taking the vital step of getting full facts about your situation. It is important to realise that once you have formally appointed a PIP to handle your case, you no longer have to have any direct contact with Creditors yourself. Your PIP will assume responsibility for that role - a development which brings a huge amount of relief and removes a huge amount of stress.

3. You don’t need to have complete financial statements to get help

It may be years rather than months since you were able to pay your mortgage or other debts and you may not have all the paperwork dating back to when you started to fall behind with payments. Don’t let that stop you seeking help as financial companies are legally obliged to maintain accurate client records and once you have appointed a PIP to act for you, they will be authorised to deal with all of your Creditors and to obtain all of the paperwork needed to verify outstanding balances, interest payments and any penalty charges. This is a vital step in working out an affordable repayment plan and identifying the best formal debt solution for you. A PIP will seek to negotiate deals with Creditors to restructure your debt so that you only have to make a single affordable monthly payment.

4.You will have enough money to live on if you enter a formal debt solution

Sometimes people fear that by coming forward to resolve their debt, they open themselves up to the possibility of having even less money to live on each month than if they had never taken action. This is highly unlikely to be the case as the formal debt solutions authorised by the Insolvency Service of Ireland were all devised on the underlying principle that anyone entering a debt solution is entitled to Reasonable Living Expenses . That means that you are entitled to spend a certain amount each month not just to clothe and feed you and your family but to meet their physical, psychological and social needs. It is only once those needs are met that your disposable income is allocated towards repayment of your debts.

5. There is a debt solution for every situation no matter how much debt you have

Personal debt is a very private matter seldom discussed outwith the inner sanctum of your own home which can result in worries that your particular situation is worse than anyone else’s and fears that you might not be eligible for formal debt solutions. However, whether your debt is predominantly mortgage arrears on your own home, arrears on a buy-to-let portfolio, or comprises serious credit card or credit union debt - there will be a solution that enables you to become solvent again. Your PIP can advise on the most appropriate course of action which may be a Personal Insolvency Arrangement, a Debt Settlement Arrangement, a Debt Relief Notice or Bankruptcy.