Neo Financial Solutions

Financial distress caused by Debt

People who are experiencing distress over finances and in particular too much debt need to know they are not alone. Indeed no matter how much someone is earning excess debt is a burden and needs to be addressed. No matter if the excess debt is caused by the family home mortgage arrears and/or investment property arrears the stress is the same. We are told that if there is distress the lender should be informed immediately. However, most lenders are not in a position to deal with the current level of distress calls they are getting. As a result it can take in excess of 3 months to have a lender address the issue. This builds on the stress and usually compounds the problems.

People with mortgage arrears, expecting to go into arrears or those who are struggling to keep up with current payments should understand there is help out there. You can get independent, impartial and confidential advice which will review your mortgage arrears problems, income problems and present advice to assist with solving the problems. However, it is the you who has to decide what the appropriate action is having considered the advice given regarding mortgage arrears and loan distress.

Those in mortgage distress must also remember that banks are in trouble too and are ALL willing to look at some kind of debt forgiveness depending on the circumstances. Despite what is discussed in the media and by bankers and politicians alike debt forgiveness is alive and well in Ireland. The banks have had their debts forgiven by the taxpayer! Sean Quinn has had his forgiven by Anglo, the developers are in the process of having most of theirs forgiven by NAMA. SO it is about time that the ordinary person has some debt forgiveness on mortgages and other debts. All of the banks have been re-capitalised in order to absorb the losses on bad loans so it is about time that they started to hand this capital back in the form of mortgage debt forgiveness to ordinary people.

In Iceland banks went bust. Mortgages were put into a New Good Bank. Properties were revalued and mortgages were written down to 110% of the new value and the people could get back on with their lives. And now Iceland is growing at 5% interest rates are less then current Irish overdraft rates, unemployment is less then ours and our leaders keep saying “we do not want to be another Iceland”  …  just shows how in touch with reality they are!

So Mortgage debt forgiveness is possible and can succeed. Mortgage arrears and excess debt burdens can be dealt with and solved. Landlords with mortgage arrears can be helped, multi-able property owners and ordinary people with distressed mortgages can all be helped. It is up to the individual to address the situation either with profession help or on their own. A good plan of engagement with lenders and very positive attitude are the first steps to getting the proper debt relief if not debt forgiveness. Reducing monthly payments on mortgage arrears is a major stress reducer so why not go after it?