Struggling With Big Debt on a Normal Salary

Struggling with debt isn’t always about having no money to make repayments.

At Gibson & Associates, we work with many professional individuals who despite having a regular income suffer the burden of repaying huge debt every month. Often, these are people, who without such large debt repayments would be able to experience the benefits of an otherwise normal salary.

Suffering with debt under these circumstances often results in an on-going struggle to make ends meet for long periods of time. Seeing the bulk of a monthly salary used to pay off lenders can be frustrating, demotivating, and downright crippling, and in the worst cases, can leave an individual living in poverty-like situations.

close up of man counting money and making notes

Manageable Monthly Debt Repayment

For many individuals with jobs, it’s easy to feel like they must continue to pay high debt repayments. After all, their regular income allows them to do so, in spite of the impact it has on the rest of their financial life.

But it doesn’t have to be like this. At Gibson & Associates, we can help with what may seem like the impossible; helping clients to pay off their debt in a way that leaves them with enough money to live and even to enjoy day-to-day life.

If this sounds like you, our team of Insolvency solicitors can work with you to get a great plan in place, working towards a solution that you can be genuinely happy with.

Managing Debt With a Regular Salary

In our experience, we’ve found that many people struggling with big debt like this are those working in the following sectors:

  • Medical Professionals
  • Education Professionals
  • Civil Servants
  • Police / Guardia
  • Human Resources/Administrative
  • Other Public Sector Jobs

People working in these sectors often work for a set salary; increasing gradually the longer they have served in these positions.

This means that they face long periods of time earning the same wage in jobs which are often accompanied by less frequent bonuses and only slight pay increases.

Additionally, people who end up working in these sectors, tend to have studied for longer to get the jobs in the first place. Often, a longer amount of time spent studying has an impact on debt levels, with students taking out loans and credit in order to get through university.

The Types of Debt We Can Help With

There are many different ways that debt can accumulate over time, however, for people working and paying off debts, unsecured debts are often the most common.

With unsecured debts, lenders don’t have any security for the debt, meaning if you fall behind on your payments, they generally cannot take any of your assets for the debt. Examples of unsecured debt include:

  • Bank loans
  • Credit cards
  • Store credit cards
  • Payday loans
  • Overdrafts
  • Medical Bills

Additionally, many of our clients who repay this type of debt find themselves paying extra in high interest rates. This can mean repayments have to increase over time, or go on for longer. It can also make debt once manageable, far more difficult to repay.

Secured debt may also contribute to overall debt levels. These are things like:

  • Mortgages
  • Car Finance agreements
  • Other financed purchases

What Are Your Options?

Just because you can technically ‘afford’ to pay back your current debt, doesn’t mean you have to struggle to do so. Ireland has many different solutions to help people manage their debt successfully, and recent legislation changes have worked in the favour of those who want to reduce payments or reduce the amount payable in total.

Take a look at the some of the most common options below for reducing debt, or debt repayments.

  • Debt Write-Downs

Your creditors, meaning the people you owe money to, can agree to reduce the size of your debt. This may reduce the value of an asset, but does not eliminate it entirely like bankruptcy does. Debt write-down limits the balance of your outstanding debt to a more manageable total.

This can be paid as a lump sum or in regular instalments, depending on the terms of the agreement. As Gibson & Associates are experts in personal insolvency solutions, we can request a debt write-down on your behalf, negotiating with your creditors to reach a mutually acceptable arrangement.

  • Debt Settlement Agreements

A Debt Settlement Agreement, also known a DSA, can only be used on unsecured debt. There is no limit on the amount of debt that can be subject to a Debt Settlement Agreement, but the creditor must agree to any DSA.

In order to apply for a DSA, you need to use to a PIP (Personal Insolvency Practitioner) and you are expected to pay your creditors as much as possible to obtain a discounted debt.

DSAs are normally arranged over a five-year period, sometimes six years. After this period, you are released from all debts.

  • Debt Relief Notice

A Debt Relief Notice allows up to €20,000 in unsecured debt to be written off or dramatically reduced. If you successfully obtain a debt relief notice, you will be supervised for three years after it is granted. Furthermore, if your disposable income becomes more than €60k during this 3 year period, you will need to surrender extra money to your creditors.

However, after the three-year supervisory period, you will be released from all debts.

  • Debt Write-Offs

It may be possible to ask your creditors to write off your debt entirely. Debt write off in Ireland is a suitable option for those who are in a difficult situation that is not going to improve. For example, this may include, someone who has a very low income or who cannot work due to a medical condition.

This is a slightly more complex process, and creditors often want an independent advisor to make a debt write-off request on behalf of the borrower.

How Gibson & Associates can Help You

We have a wealth of experience in negotiating personalised repayment plans for people suffering all types of financial stress.

Our solicitors will work tirelessly to ensure that you get the best result for your situation, allowing you to live life free of financial burdens.

Our Process

A solicitor from our insolvency team will collect all the evidence needed to put forward a strong case. Whatever option issue will ensure the agreement is put in writing, protecting your position in the future.

Our team of Insolvency solicitors can work with you to get a great plan in place, working towards a solution that you can be genuinely happy with. Read our case studies to see how other people have benefitted from our unique service, or contact us on 1890 989 289 to start working towards a brighter future today.

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