Your options laid bare: what to do if you can’t clear your debt

Brought to you by the Insolvency Service of Ireland.

Trying to clamber your way out of debt can feel pretty impossible at times – but most of us have been there at some point or another.

Whether you’re struggling to pay off a credit card bill or repayments on your home – the burden can feel heavy. Logic says that the best way to clear debt is to spend less, get rid of unnecessary expenses, and cut back. However, that's easier said than done... because spending is easier than actually saving! Worry no more! The Her Money Experts are here to help shed light on your money dilemmas... If you are in mortgage difficulty or have credit cards or 'loan' debts you just can’t clear, ask our experts. No question is too small and probably nothing that our panel of experts haven't heard before. And, don’t worry, all of your questions are completely and utterly anonymous. One helpful tip we received was to open a savings account that's hard to access (ie one we can’t transfer money from via our phone) and it has gone a long way to get us out of a rut. Remember too that there is plenty of support available for those looking to get out of debt and manage their finances better. We have compiled some options available from the Insolvency Service of Ireland if you are struggling with debt.

1. Debt Settlement Arrangement (DSA)

If you have debt such as credit cards, 'loans' and overdrafts, a DSA could be the right choice for you. Your professional advisor will deal with your creditors on your behalf so no more unwanted phone calls, 'letters' or visits.

2. Debt Relief Notice (DRN)

If you have a low income, few assets and debts of less than €35,000 that you can’t repay, then a DRN could be the right solution for you. However, if you have a mortgage, a DRN is not a suitable solution, as you would be considered to have a considerable asset.

3. Personal Insolvency Arrangement (PIA)

If you have secured debt and unsecured debt that you can't repay, a PIA could be the right option for you. A PIA is a formal agreement with all your creditors that they will write off some of your unsecured debt and restructure any remaining secured debt.

4. Bankruptcy

When you're declared bankrupt, your property and possessions are transferred to a person called the Official Assignee. He then arranges for those items to be sold and the money generated from the sale is distributed to the people you owe money to your creditors. We hope this helps and we'll get back to our readers with the informative answers in our Ask the Money Experts Q&A - coming soon. Brought to you by the Insolvency Service of Ireland.