Question
I have sat down and done a budget. My major issue is that after paying “necessary bills” I have no additional money left over to pay my loans and other bills.
Answer
If, after you made a budget, you’ve come to the conclusion that you won’t have any money left over to pay your creditors, you need serious help. I am glad you aren’t burying your head in the sand and trying to do something about your situation. This will help you in the long run.
My recommendation is that you contact MABS (Money Advice & Budgeting Service www.mabs.ie ). They will provide you with a free service that will help you get out of debt. The three main areas they can help you on are:
(1) Keeping a roof over your head. Paying your mortgage is the most important thing to do. MABS will work with you to come up with an alternative solution to pay your mortgage. The government have put in place measures to pressurise the banks to work with you rather than allow the banks to kick you out on the street.
(2) They can help prioritise primary creditors: water, gas and electricity. You mustn’t overlook life, house & general insurance – they protect you and it is essential that you keep up your repayments.
(3) MABS will also help you contact all your secondary creditors. You will have to put together alternative arrangements to pay all your creditors back when you can afford to. Debt is such a major issue for Irish people, you’ll find most companies have departments dedicated to restructuring debts like yours.
As I often say to my clients – be positive, look on the bright side because nobody diagnosed you with a serious illness. I know trying to cope with debt is a stressful situation – but take action today is the only way out.
Allan Matthew Cuthbert t/a Financial Wellbeing is regulated by the Central Bank of Ireland to advice on Mortgage,Savings, Life and Pension products