4 Ways to Deal with Unmanageable Debt

overview of desk with calculator and 4 hands

Being in debt is not an ideal situation for anyone. However, the best way you can help yourself is to be informed about debt management solutions. This article will help you understand 4 options for managing your debt.

The  4 ways in which to deal with unmanageable debt are:

1. Leave matters alone
2. Direct negotiation
3. Personal Insolvency
4. Bankruptcy

When a client comes to New Beginning we assess their circumstances and advise which of these options is best.

In many ways, they follow a sequence.

In other words, where doing nothing is not an option we look to direct negotiation. Where that is not working, we look to Personal Insolvency and finally if nothing else works there is the option of bankruptcy.

Doing nothing may seem a poor option though in some cases it is best advice – either in the short of medium term. Once people understand the laws and systems around debt they can move on with their lives, even if the actual problem has not been fully resolved.

Direct negotiation has its ups and downs and depends on the type of debt and the lenders involved. We deal a lot with the funds who can be very reasonable or very aggressive depending on who is behind the debt and the position it is adopting at that point in time. Often funds will make silly demands which need to be treated with a certain contempt. 6 months later when the fire has gone out a better deal can be struck.

Personal Insolvency is a very powerful tool – especially for homeowners. The law now provides that a Court can enforce a deal on a bank or fund where a home is concerned.

Bankruptcy is the final option and must be approached with caution. Professional advice should always be taken before seeking an adjudication in bankruptcy across a whole range of areas. We have come across cases where people have been adjudicated and have some very unpleasant surprises that could have been avoided if proper advice had been taken.

New Beginning is the only entity in Ireland that can provide all solutions.

We are licensed by the Central Bank to engage in direct negotiation with creditors. Since 2013 anybody providing this service needs a licence and the licence means that certain standards will always be maintained. For example, all of our advisers are fully qualified to the standards demanded by the Central Bank. It is interesting that many people offering such services are not qualified and this puts borrowers at great disadvantage.

New Beginning has its own Personal Insolvency Practitioners and we also partner with a larger firm of Personal Insolvency Practitioners to ensure that our clients get the best service possible.

Finally, we have lawyers and experts available to bring clients through the bankruptcy process where that is necessary.

In addition to all this New Beginning Financial Services have experts in pension law to advise people on the best protection measures available to gain best benefit from the laws that protect pensions in insolvency and bankruptcy.

At New Beginning, we now offer funding services for our commercial clients and we are ramping up our Mortgage to Rent offering over the coming months.

For more information on us and our services and how we could help you call us on 01-5240000 or email us on info@newbeginning.ie