DEBTS KEEP MOUNTING
I can only pay off minimum every month
HOW do you avoid unforeseen debt? I always manage to pay off the minimum on credit cards, loans etc each month but most months there’s extra debt that builds up, be it a medical expense, unexpected car service, birthday etc.
I feel my debt is continuously sneaking up and although I’m paying off the minimum required I fear its building month on month and it will come to a point where I can’t meet the minimum repayments.
Paul — Limerick It is difficult to fully answer your questions Paul as I do not know what your actual debts are. However, if you are only managing the minimum payment on your credit cards and loans, this would suggest that you are only ever able to manage the minimum payment and therefore are never actually clearing the debt ( it will take you 20 years to clear the credit card debt alone if only paying the minimum every month!). It is possible that you are insolvent, ie unable to pay your debts in full as they fall due. If this is the case, you should talk to a PIP ( Personal Insolvency Practitioner). A list of PIPs participating in the scheme is available on www.backontrack.ie.
A PIP is a qualified professional regulated by the Insolvency Service of Ireland ( ISI). PIPs have the relevant expertise to help you reach a permanent solution to your debt problems. They will advise you of all the options and solutions available to help you get you back on track.
If you are not sure that you are insolvent, I would recommend you contact MABS to get help with planning and budgeting and your debt repayments.
MABS can help you put a plan in place to get your debt cleared over a set period of time. They are also VERY friendly. Best wishes.