06 September 2023
Tips for Navigating Debt
As the cost of living continues to rise in Ireland, managing debt has become a challenge for many, especially those on fixed incomes. At Synergy Credit Union, we understand the importance of financial well-being, and we're here to offer practical guidance on managing debt during these trying times.
1. Create a Budget and Track Your Spending:
A crucial first step in managing debt is to create a budget and closely monitor your spending. This will provide valuable insights into your financial habits, helping you identify areas where you can cut back and prioritize your expenses effectively. See our blog on budgeting using the 50-30-20 rule here.
2. Develop a Debt Repayment Strategy:
Once you have a budget in place, focus on paying down your debt strategically. Consider using methods like the debt snowball or the debt avalanche to accelerate your progress. Our loans officers can help you determine the best approach based on your unique circumstances. Did you know that you can switch all your debt into one easy repayment by using our Switch and Save Loan Product. See details on our SWITCH & SAVE LOAN here.
3. Communicate with Creditors:
If you find it challenging to make your debt payments, don't hesitate to talk to your creditors. They may be willing to work with you to establish a payment plan that aligns with your current financial situation. Seek support and advice from MABS if you are having any issues with any of your creditors. Here is the MABS website and contact details.
4. Explore other options with MABS:
MABS is the Irish money advice service. They have been supporting people with money advice, budgeting, and problem debt for 30 years. It is a free service where you can get impartial advice to help you manage your money and take control of debt. They offer support online, over the phone and face to face. See their website HERE and one of their advice pages on tackling debt HERE.
5. Additional Tips for Managing Debt:
- Be realistic about your budget adjustments. Gradual changes are more sustainable and less likely to lead to frustration.
- Make small lifestyle changes, like bringing lunch to work or cancelling unused subscriptions, to free up funds for debt repayment.
- Prioritise paying down debts with higher interest rates to save on long-term costs.
- Don't be afraid to seek help from debt management organisations such as MABS. They can provide valuable support and guidance throughout your journey.
At Synergy Credit Union, we understand that managing debt during a cost of living crisis can be challenging. However, we want to assure you that you are not alone, and there are resources available to help you regain control of your financial situation.
See our page here on our website about contact details for organisations who may be able to help you when you are in financial difficulties.
Remember, you can always reach out to us for assistance, and we are committed to helping you achieve your future financial goals. We have an arrangement with Irish Life Financial Services which is an insurance intermediary that can review your protection, retirement, savings and investment needs, and offer a full free financial review with one of their Qualified Financial Advisers.
This can be conducted online or over the phone at a time and place that suits you. You can get more details and book an appointment if you wish here.
Together, we can navigate these difficult times and work towards a brighter and more financially secure future.
Contact Synergy Credit Union today and see we can help you manage your debt with confidence.