The hike in costs across many sectors is likely putting pressure on many people in Ireland at the moment.
If you have any existing loans gathering interest over the past few years that are adding to your stress, now is the time to clear them as quickly as you can.
On the other hand, if you’re a first-time buyer headed to apply for your mortgage on your own or in a couple, you need to have all debt sorted before they’ll likely grant your loan.
So today, the Competition & Consumer Protection Commission released a quick three-point guide to help you clear any existing loans.
Make a list of all your current debts
Make a list of any and all your debts in order of priority, starting with your mortgage (if you have one) or rent, utility bills, and any ongoing medical costs you have.
It is recommended that you pay these first to avoid being put at risk of losing your home, being evicted, having your gas or electricity disconnected, or becoming ill.
Then look at your other debts such as credit card debt, overdrafts, and personal loans.
You should then list these debts in order of the highest annual percentage rate (APR) and these should be paid after your mortgage or rent, utility bills, and medical costs.
Make a new budget/check your entitlements
You need to make a budget that includes repayments of all loans and debts.
Work out how much you can afford to repay each week or month and learn how to spread your money to get more from it.
Make sure you are claiming all that you are entitled to as well, because depending on your income, circumstances, and mortgage, you may be eligible for mortgage interest supplement, mortgage interest tax relief, other occupation-related tax relief, and more.
Contact your lenders to discuss your options
If you’re getting to the stage where you’re worried about your ability to meet your loan repayments, contact your lender as soon as you can to explain your situation.
Have all of your facts and figures ready to go, including your list of debts, interest rates, and how much you still owe on each.
Let your lenders know how much you can afford to repay each week or month using your new budget.
Discuss options your lender may allow including: debt consolidation, payment breaks, or extending the term of your loan.
This will make your loan more expensive in the long term, but it will make things more manageable for you in the short term.
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