Debt Problem in Ireland?

by admin on 1 September 2010

Welcome to all Irish readers from Debtsecrets!

As we all well know Mortgage as well as credit card debt and other personal Debt has soared 600% in Ireland in the last 10 recent years. And now in Ireland September 2010  those that have not tried leaving the country to escape  their debts are in an exasperated state trying to  pay the huge mortgages and the massive hangover of  credit card debt. (The debt  is estimated  in excess of 100 billion Euros. ) Not only that, but the Irish consumer will have to pay off their debt when Ireland is in an unprecedented recession!

DebtSecrets giving Irish people solid factual advice about their debt problems

Here at Debt secrets ireland we try to inform you about your situation in a factual and helpful manner. Please read our articles carefully and use them to help you in your debt situation. However do not rely exclusively on our advice and consult a debt professional or solicitor where necessary.

How do I deal with my Debt Problem in Ireland?

1. Analyse your debt situation yourself first.

Start with this article a summary of what to do to tackle your debt problem and follow its advice. It’ll save you alot of time and will help you set out a budget and organize yourself with a thorough statement of your affairs. Bear in mind that there are one or two differences, however, in tackling Irish debt problems as noted below.

2. Approach MABs for Professional Advice First before other Debt Management Companies

Like in Britain, as the debt crisis has worsened the number of debt management companies in Ireland  have mushroomed. Many debt manamgement companies provide a useful service but like in the UK caution is urged in dealing with debt management companies who may be more interested in their own fees rather than tailoring a solution to your debt problem.

In Ireland, a Debt Management company can help you come to an arrangement with your creditors.  They usually charge a fee for the service. In contrast MABs (Money Advice and Budgeting Service) is a free service run by the Government.Therefore approach the free Money Advice and Budgeting Service (MABs)  first. They may even negotiate with the banks on your behalf.

3. If you deal with your creditors/banks directly make written agreements not casual verbal agreements.

Casual verbal agreements are a out when dealing with your creditors. Get everything, how much you are going to pay and how often in a written agreement signed by both you and the banking institution. Also in general it is not a good idea to stop paying some debts but continue paying others – be careful if you are prioritizing debts.

4. Understand that the law on debt for individuals in Ireland is stricter than in other countries.

Remember arrangements with banks are just that – arrangements. There is no formal legal vehicle established by legislation for dealing with your debts in Ireland comparable to the individual voluntary arrangement in the UK.

In addition there is a long wait for being discharged (finished) with bankruptcy in Ireland. It typically tends to be longer in Ireland (a very long 12 years) compared to as little as 1 to 5 years for being discharged from bankruptcy in the UK.

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