Debt Management Explained

Almost everyone in Ireland today owes some money - has a debt.

If you are trying to eliminate the stress of debt, you must start managing it.

The purpose of Debt Management is for you to become debt free. To achieve this you need to sit down and take a realistic look at your current financial position and the cost of maintaining your lifestyle.

The second step is to contact a member of the Debt Management Association Ireland who will work together with you to analyse your income, expenditure and debts. All of your information is absolutely private and confidential. Your professional advisor, your Debt Manager, will then make recommendations to suit your personal situation.

In many cases the answer will be a Debt Management Plan. If this is so, your Debt Manager will work with you to develop a Plan specific to your personal needs and making sure that you have a realistic liveable budget.

Your Debt Manager will negotiate -on your behalf- with your bank, credit card companies, Credit Union and other creditors to agree reduced repayments which you can reasonably afford.

A single monthly payment, often lower than you are currently paying, will be arranged, making your monthly repayment manageable. This payment will be made into your disbursement account with your Debt Manager.

Your Debt Manager will then make payments to your creditors.

It is essential that you keep up your monthly payments so that regular repayments are established and maintained with your creditors. This allows your Debt Manager to manage your creditors on your behalf and your creditors will be less likely to continue making phone calls and writing letters once they start receiving regular payments on time.

Your Debt Manager will provide you with all necessary documentation as evidence of your repayment programme and this will be valuable in restoring your credit rating.

Together, you and your Debt Manager will carry out regular reviews of your financial situation to ensure that your debt is dealt with as quickly as possible.

You will have a dedicated personal Debt Manager available to help you at all times during the life of your Debt Management Plan.